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Rule2024-21967

Phasedown of Hydrofluorocarbons: Management of Certain Hydrofluorocarbons and Substitutes Under the American Innovation and Manufacturing Act of 2020

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Published

October 11, 2024

Effective

December 10, 2024

Issuing agencies

Environmental Protection Agency

Abstract

The U.S. Environmental Protection Agency is issuing regulations to implement certain provisions of the American Innovation and Manufacturing Act of 2020. This rulemaking establishes an emissions reduction and reclamation program for the management of hydrofluorocarbons that includes requirements for leak repair and installation and use of automatic leak detection systems for certain equipment using refrigerants containing hydrofluorocarbons and certain substitutes; the servicing and/or repair of certain refrigerant- containing equipment to be done with reclaimed hydrofluorocarbons; the initial installation and servicing and/or repair of fire suppression equipment to be done with recycled hydrofluorocarbons, technician training, and recycling of hydrofluorocarbons prior to the disposal of fire suppression equipment containing hydrofluorocarbons; removal of hydrofluorocarbons from disposable cylinders before discarding them; and certain recordkeeping, reporting, and labeling requirements. In addition, EPA is establishing alternative Resource Conservation and Recovery Act standards for certain ignitable spent refrigerants being recycled for reuse.

Full Text

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[Federal Register Volume 89, Number 198 (Friday, October 11, 2024)]
[Rules and Regulations]
[Pages 82682-82872]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-21967]

[[Page 82681]]

Vol. 89

Friday,

No. 198

October 11, 2024

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 the American Innovation and
Manufacturing Act of 2020; Final Rule

Federal Register / Vol. 89, No. 198 / Friday, October 11, 2024 /
Rules and Regulations

[[Page 82682]]

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ENVIRONMENTAL PROTECTION AGENCY

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

[EPA-HQ-OAR-2022-0606; FRL-10105-02-OAR]
RIN 2060-AV84

Phasedown of Hydrofluorocarbons: Management of Certain
Hydrofluorocarbons and Substitutes Under the American Innovation and
Manufacturing Act of 2020

AGENCY: Environmental Protection Agency (EPA)

ACTION: Final rule.

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SUMMARY: The U.S. Environmental Protection Agency is issuing
regulations to implement certain provisions of the American Innovation
and Manufacturing Act of 2020. This rulemaking establishes an emissions
reduction and reclamation program for the management of
hydrofluorocarbons that includes requirements for leak repair and
installation and use of automatic leak detection systems for certain
equipment using refrigerants containing hydrofluorocarbons and certain
substitutes; the servicing and/or repair of certain refrigerant-
containing equipment to be done with reclaimed hydrofluorocarbons; the
initial installation and servicing and/or repair of fire suppression
equipment to be done with recycled hydrofluorocarbons, technician
training, and recycling of hydrofluorocarbons prior to the disposal of
fire suppression equipment containing hydrofluorocarbons; removal of
hydrofluorocarbons from disposable cylinders before discarding them;
and certain recordkeeping, reporting, and labeling requirements. In
addition, EPA is establishing alternative Resource Conservation and
Recovery Act standards for certain ignitable spent refrigerants being
recycled for reuse.

DATES: This rule is effective December 10, 2024.

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#215648524f484456524a480f42495348525548404f614451400f464e57">[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 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#a3c2d7c2c4ca8dd7d1c2c0dae3c6d3c28dc4ccd5">[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:

AHRI--Air-Conditioning, Heating, and Refrigeration Institute
ALD--Automatic Leak Detection
AIM Act--American Innovation and Manufacturing Act of 2020
APF--Air Permitting Forum
APU--Auxiliary power unit
ASHRAE--American Society of Heating, Refrigerating and Air-
Conditioning Engineers
ASTM--American Society for Testing and Materials
BOEM--Bureau of Ocean Energy Management
BTU/h--British thermal units per hour
CAA--Clean Air Act
CARB--California Air Resources Board
CBI--Confidential Business Information
CFC--Chlorofluorocarbon
CFR--Code of Federal Regulations
CH<INF>4</INF>--Methane
CO<INF>2</INF>--Carbon dioxide
CO<INF>2</INF>e--Carbon Dioxide Equivalent
DOD--Department of Defense
DOI--Department of the Interior
DOJ--Department of Justice
DOT--Department of Transportation
EEAP--Environmental Effects Assessment Panel
EOL--End of Life
EPA--Environmental Protection Agency
ER&R--Emissions Reduction and Reclamation
EVe--Exchange Value Equivalent
FAA--Federal Aviation Administration
FEMA--Fire Equipment Manufacturers Association
F-HTFs--Fluorinated Heat Transfer Fluids
FOIA--Freedom of Information Act
FSSA--Fire Suppression Systems Association
GHG--Greenhouse gas
GWP--Global Warming Potential
HARC--Halon Alternatives Research Corporation
HCFC--Hydrochlorofluorocarbon
HCFO--Hydrochlorofluoroolefin
HEEP--HFC Emissions Estimating Program
HFC--Hydrofluorocarbon
HFO--Hydrofluoroolefin
HSWA--Hazardous and Solid Waste Amendments of 1984
HVAC--Heating, Ventilation, and Air Conditioning
HVACR--Heating, Ventilation, Air Conditioning, and Refrigeration
ICR--Information Collection Request
in-Hg--inches of Mercury
IPCC--Intergovernmental Panel on Climate Change
IPR--Industrial Process Refrigeration
LRM--Lifecycle refrigerant management
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
MVAC--Motor Vehicle Air Conditioner
NAICS--North American Industrial Classification System
NAFED--National Association of Fire Equipment Distributors
NEDA/CAP--National Environmental Development Association's Clean Air
Project
NFPA--National Fire Protection Association
NODA--Notice of Data Availability
NRDC--Natural Resources Defense Council
NTTAA--National Technology Transfer and Advancement Act
OCS--Outer Continental Shelf
OCSLA--Outer Continental Shelf Lands Act
ODP--Ozone Depletion Potential
ODS--Ozone-depleting substances
OEM--Original Equipment Manufacturer
OMB--Office of Management and Budget
PII--Personally identifiable information
ppm--Parts Per Million
PRA--Paperwork Reduction Act
PTAC--Packaged terminal air conditioners
R4 Program--Refrigerant Recovery, Reclaim, and Reuse Requirements
(CARB Program)
RACA--Request for Additional Consumption Allowance
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
SAE--Society of Automotive Engineers
SC-HFC--Social Cost of Hydrofluorocarbons
SISNOSE--Significant Economic Impact on a Substantial Number of
Small Entities
SNAP--Significant New Alternatives Policy
TFA--Trifluoracetic acid
TSD--Technical Support Document
UMRA--Unfunded Mandates Reform Act
VCOP--Voluntary Code of Practice
VRF--Variable Refrigerant Flow
VSQG--Very Small Quantity Generator

Table of Contents

I. Executive Summary
A. What is the purpose of these regulations?
B. What is the summary of the regulations finalized in this
notice?
C. What is the summary of the costs and benefits?
II. General Information
A. Do these regulations apply to me?
B. What is EPA's authority for these regulations?
III. Background
A. What are HFCs?
B. How do HFCs affect public health and welfare?
C. What regulatory programs addressing refrigerants has EPA
already established under the Clean Air Act?
1. National Recycling and Emission Reduction Program (CAA
section 608)

[[Page 82683]]

2. Motor Vehicle Air Conditioning Servicing Program (CAA section
609)
3. Significant New Alternatives Policy Program (CAA section 612)
IV. How is EPA regulating the management of HFCs and their
substitutes?
A. What definitions is EPA implementing under subsection (h)?
1. Terms That Did Not Generate Comment and That EPA Is
Finalizing as Proposed
2. Terms That Received Comment or That EPA is Modifying
3. What additional comments did EPA receive on definitions?
B. What types of equipment is EPA addressing under subsection
(h)?
C. How is EPA addressing leak repair?
1. What refrigerants are subject to leak repair requirements?
2. Appliances with what charge size are subject to leak repair
requirements?
3. What leak repair provisions is EPA establishing?
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
D. How is EPA establishing requirements for the installation of
automatic leak detection systems?
1. Automatic Leak Detection Requirements
2. Recordkeeping and Reporting
E. How is EPA establishing requirements for recovered and
reclaimed HFCs?
1. Reclamation Standard
2. Requirements for Servicing and/or Repair of Existing
Equipment in the RACHP sector
F. How is EPA establishing an HFC emissions reduction program
for the fire suppression sector?
1. Nomenclature Used in This Section
2. Emissions Reduction in the Fire Suppression Sector
a. Minimizing Releases of HFCs
b. Requirements for Initial Installation of Equipment for Fire
Suppression
c. Requirements for Servicing and/or Repair of Existing
Equipment for Fire Suppression
d. Fire Suppression Technician Training
e. Recycling of HFCs Prior to Disposal of Fire Suppression
Equipment Containing HFCs
f. Recordkeeping and Reporting
G. What requirements is EPA establishing for handling disposable
cylinders?
1. Requirements for Disposable Cylinders
2. Small Cans of Refrigerant
H. How is EPA establishing RCRA refrigerant recycling
alternative standards?
1. Nomenclature Used in This Section
2. Background
3. Final Alternative RCRA Standards for Ignitable Spent
Refrigerants Being Recycled for Reuse
a. Comments on the RCRA Alternative Standards and Changes Made
in Response to Comments
b. Scope of the Final RCRA Alternative Standards
c. RCRA Alternative Standards Requirements
4. RCRA Very Small Quantity Generator Wastes
5. RCRA Regulation of Exports and Imports of Certain Ignitable
Spent Refrigerants
6. Applicability of Alternative Standard in RCRA-Authorized
States
7. Effect on State Authorization
I. MVAC Servicing and Reprocessed Material
V. How is EPA treating 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. Emission 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 Fire Suppression
VI. What are the costs and benefits of this action?
A. Background
B. Estimated Costs and Benefits of the Final Rule
1. Total Incremental Costs and Benefits of the Final Rule
2. Estimating Costs and Benefits Based on Affected Equipment and
Appliances
VII. How is EPA considering environmental justice?
VIII. How is EPA responding to other comments on the proposed rule?
IX. Judicial Review
X. Severability
XI. 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
K. Congressional Review Act (CRA)

I. Executive Summary

A. What is the purpose of these regulations?

The Environmental Protection Agency (EPA) is issuing regulations to
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; \1\ facilitating the transition to
next-generation technologies by restricting use of these HFCs in the
sector or subsectors in which they are used; \2\ 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 rulemaking 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.
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\1\ EPA has issued regulations establishing and codifying a
framework for phasing down HFC production and consumption through an
allowance allocation program, ``Phasedown of Hydrofluorocarbons:
Establishing the Allowance Allocation and Trading Program Under the
American Innovation and Manufacturing Act'' (86 FR 55116, October 5,
2021)--referred to as the ``Allocation Framework Rule'' throughout
this document. EPA finalized a separate rulemaking to update certain
aspects of that regulatory framework (see final rule at 88 FR 46836,
July 20, 2023)--referred to as the ``2024 Allocation Rule''
throughout this document.
\2\ EPA has issued regulations addressing the framework for how
EPA intends to implement its authority to restrict the use of HFCs
in sectors and subsectors where they are used, as well as
establishing certain restrictions on the use of HFCs in specific
sectors or subsectors in which they are used, ``Phasedown of
Hydrofluorocarbons: Restrictions on the Use of Certain
Hydrofluorocarbons Under the American Innovation and Manufacturing
Act of 2020'' (88 FR 73098, October 24, 2023)--referred to as the
``2023 Technology Transitions Rule'' throughout this document. EPA
issued an interim final rule under the Technology Transitions
program further addressing a particular subsector (88 FR 88825,
December 26, 2023).
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More specifically, subsection (h) of the AIM Act, titled
``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 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 rulemaking establishes the Emissions Reduction and Reclamation
(ER&R) Program to implement the provisions of subsection (h), including
its authority to issue regulations to

[[Page 82684]]

control such practices, processes, or activities, particularly as
related to the management, use, and reuse of HFCs and substitutes in
equipment. Further, these regulations include provisions to support
implementation of, compliance with, and enforcement of requirements
under subsection (h) of the AIM Act.
Additionally, EPA is establishing alternative RCRA standards for
certain ignitable spent refrigerants being recycled for reuse, as that
term is used under RCRA.\3\ These standards involve regulatory changes
to 40 Code of Federal Regulations (CFR) parts 261 through 271 and are
separate from the regulations under subsection (h)(1) of the AIM Act.
These standards are established under a different set of statutory
authorities than the ER&R regulations, and they are part of an
independent and distinct regulatory regime. EPA is providing notice of
the AIM Act regulations and the RCRA regulations in one Federal
Register notice given both the RCRA regulations concerning the recovery
and recycling of certain ignitable spent refrigerants and the AIM Act
regulations concerning recovery and reclamation of refrigerants may be
of interest to some of the same stakeholders.
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\3\ 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 the regulations finalized in this notice?

EPA is promulgating two separate and distinct sets of regulations.
First, EPA is establishing an ER&R program for the management of HFCs
and certain substitutes under subsection (h) of the AIM Act. The Agency
is including provisions that address the purposes identified in
subsection (h)(1) of the AIM Act of maximizing reclamation, minimizing
the release of HFCs from equipment, and ensuring the safety of
technicians and consumers. Specifically, the AIM Act regulations
include requirements for:
<bullet> Leak repair of appliances that contain at least 15 pounds
of a refrigerant that contains an HFC or a substitute for an HFC with a
global warming potential (GWP) above 53, with specific exceptions;
<bullet> Installation and use of an automatic leak detection (ALD)
system 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 reclamation standard limiting the amount of virgin HFCs
that can be contained in reclaimed HFC refrigerants;
<bullet> The servicing and/or repair of existing equipment in
certain refrigeration, air conditioning, and heat pumps (RACHP)
subsectors to be done with reclaimed HFCs;
<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, including
requirements for the initial installation and servicing and/or repair
of fire suppression equipment to be done with recycled HFCs, as well as
requirements related to technician training in the fire suppression
sector;
<bullet> Removal of HFCs from disposable cylinders before
discarding; and
<bullet> Recordkeeping, reporting, and labeling.
Enforcement and compliance. To support compliance with these
requirements, EPA is establishing labeling, reporting, and
recordkeeping requirements as described in this rulemaking notice. The
Agency intends to use a reporting platform the same as or similar to
those used for prior AIM Act rules, and will consider making
information not entitled to confidential treatment, as described in
section V of this action, publicly available.
Exemptions for certain applications and other provisions.
Provisions finalized in this action do not apply to two applications,
mission-critical military end uses and on board aerospace fire
suppression, as listed at 40 CFR 84.13(a), for a year or years for
which that application receives an application-specific allowance as
defined at 40 CFR 84.3. As such, the provisions established in this
action include exemptions for the following applications, for a year or
years for which that application receives an application-specific
allowance:
<bullet> Mission-critical military end uses and
<bullet> On board aerospace fire suppression.
Amendments to the RCRA hazardous waste regulations. Second, EPA is
amending a separate set of regulations promulgated under RCRA, a
separate statutory authority from the AIM Act, to establish alternative
standards for ignitable spent refrigerants when ``recycled for reuse,''
as the term is to be defined under RCRA. EPA is establishing that the
alternative standards at 40 CFR part 266, subpart Q, under RCRA, apply
to HFCs and other substitutes that are lower flammability (i.e., 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).\4\ EPA is limiting the alternative
standards to lower flammability HFCs and substitutes (Class 1, 2, and
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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\4\ ASHRAE Standard 34-2022 assigns a safety group
classification for each refrigerant that 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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Other topics. Together with the proposal for this rule, EPA issued
an advanced notice of proposed rulemaking (ANPRM) seeking information
on approaches for establishing requirements for technician training
and/or certification. As stated at proposal, EPA is not addressing
technician training in this final rulemaking and accordingly is not
responding to comments on the ANPRM in this final rule.
Additionally, EPA is not finalizing as part of this action under
the AIM Act the proposed provisions for container tracking of HFCs that
could be used in the servicing, repair, and/or installation of
refrigerant-containing or fire suppression equipment. EPA is also not
finalizing in this action provisions requiring the initial installation
of refrigerant-containing equipment in certain subsectors in the RACHP
sector to be done with reclaimed refrigerant where HFCs or a blend
containing HFCs are used. The Agency intends to further consider those
provisions and the comments submitted on the proposed requirements
before determining how to proceed. As such, EPA need not respond to
public comments on those proposed requirements as part of this action.
EPA received many comments on this rulemaking, including those that
were in general support or opposition of the various provisions.
Specific comments

[[Page 82685]]

as relevant to provisions in this rulemaking are discussed in the
respective sections of this rulemaking. Some comments raised issues
that are beyond the scope of this rulemaking; because those comments
require no response, EPA need not address them in this notice, though
in many cases the Agency has noted the submission of such comments for
informational purposes.

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

The costs and benefits for the provisions related to managing
regulated substances and their substitutes in this rule comes from the
Analysis of the Economic Impact and Benefits of the Final Rule:
Management of Certain Hydrofluorocarbons and Substitutes Under
Subsection (h) of the American Innovation and Manufacturing Act of 2020
technical support document (TSD) (referred to as the ``Economic Impact
and Benefits TSD'' in this rule) and the Regulatory Impact Analysis
(RIA) Addendum for this rule (referred to in this rule as the ``RIA
addendum'') contained in the docket of this rule to provide the public
with information on the relevant costs and benefits of this action, 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 amendments to the RCRA hazardous waste
regulations. These analyses--as summarized later in this section--
highlight the economic costs and benefits of the provisions in this
rulemaking.
Given that the provisions being finalized concern the management of
HFCs, and HFCs are subject to the phasedown of production and
consumption under the AIM Act, the Agency relied on its previous
analyses 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), the 2024 Allocation Rule, ``Phasedown
of Hydrofluorocarbons: Allowance Allocation Methodology for 2024 and
Later Years'' (88 FR 46836, July 20, 2023),\5\ and the 2023 Technology
Transitions Rule, ``Phasedown of Hydrofluorocarbons: Restrictions on
the Use of Certain Hydrofluorocarbons Under the American Innovation and
Manufacturing Act of 2020'' (88 FR 73098, October 24, 2023) are assumed
as a baseline for this rule. In this way, EPA analyzed the potential
incremental impacts of the rule, attributing benefits only insofar as
they are additional to those already assessed in the Allocation
Framework Rule RIA, the 2024 Allocation Rule RIA Addendum, and the 2023
Technology Transitions Rule RIA Addendum (collectively referred to as
``Allocation and 2023 Technology Transitions Rules'' in this
discussion).
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\5\ This rule 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 percent to reflect corrected data, among other changes
(88 FR 46836, July 20, 2023). EPA also finalized another rulemaking
in 2023 to update the regulations established in the HFC Allocation
Framework Rule. That rule ``Phasedown of Hydrofluorocarbons:
Adjustment to the Hydrofluorocarbon Baseline,'' amended the
production baseline downward by 0.005 percent to reflect corrected
data (88 FR 44220, July 12, 2023).
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As detailed in the RIA addendum and the Economic Impact and
Benefits TSD, the number, charge sizes, leak rates, and other
characteristics of potentially affected RACHP equipment were estimated
using EPA's Vintaging Model.\6\ These estimates served as a basis for
calculating the reductions in HFC consumption and emissions from the
various requirements of the final rule. As described in the RIA
addendum and the Economic Impact and Benefits TSD, the leak repair and
ALD system provisions finalized in this rule are assumed to result in
the repair of leaking systems earlier than they otherwise would have,
leading to reduced emissions of HFCs. Provisions requiring 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.
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\6\ U.S. EPA. 2023. EPA's Vintaging Model representing the
Allocation Framework Rule as modified by the 2024 Allocation Rule
RIA Addendum and the 2023 Technology Transitions Rule RIA Addendum.
VM IO file_v4.4_02.04.16_Final TT Rule 2023 High Addition.
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Estimated reductions in HFC releases from equipment result in
climate benefits due to reduced climate forcing, which have been
monetized in the RIA addendum by multiplying avoided emissions by
estimates of the social cost of each HFC (collectively referred to as
SC-HFC) affected by the rule. The RIA addendum includes these SC-HFC
estimates and uses them in some of the analyses for the purpose of
providing information to the public and to comply with executive
orders. Although we utilized the SC-HFC estimates for purposes of those
analyses, this action does not rely on those values or the resulting
quantification of climate benefits as a record basis for this rule, and
we would reach the same conclusions in absence of the social costs of
HFCs. In the years 2026 through 2050, EPA estimates the rule will
prevent approximately 120 million metric tons of carbon dioxide
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 $8.4 billion (discounted to 2024 dollars
using a three percent discount rate).\7\ 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 will prevent approximately 5.6 MMTCO<INF>2</INF>e
of HFC emissions in 2030 and 3.0 MMTCO<INF>2</INF>e in 2040.
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\7\ Unless stated otherwise, costs and benefits in this section
are presented in 2022 dollars.
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Reducing HFC emissions due to fixing leaks earlier is also
anticipated to lead to savings for some system owners and operators, as
less new refrigerant needs to be purchased to replace leaked
refrigerant. In 2026, it is estimated that the leak repair and ALD
provisions will lead to savings of $19.5 million (2022$) based on
reduced HFC refrigerant needed to maintain the equipment. We also are
aware that a refrigerant-containing appliance would operate less
efficiently if not properly charged and maintained, leading to
increased energy costs; however, we have not quantified such savings in
our analysis. EPA acknowledges that these $19.5 million in savings may
not completely offset leak repair compliance costs and may not accrue
uniformly to all regulated entities. Further, while these provisions
have been estimated to result in savings, EPA understands that entities
that may be affected by these 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 82686]]

the most profitable course.\8\ For example, market failures may exist
where there is 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.
---------------------------------------------------------------------------

\8\ 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 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 provisions, the costs associated
with using reclaimed HFCs in certain RACHP subsectors for the servicing
of existing equipment (vis a vis virgin manufactured HFCs), the costs
associated with minimizing releases of HFCs from fire suppression
equipment (including using recycled HFCs in the initial and servicing
and/or repair of fire suppression equipment), and the cost of
disposable cylinder management requirements. In the years 2026 through
2050, these provisions would result in compliance costs (inclusive of
refrigerant savings) with a present value estimated at $1.5 billion (in
2022 dollars discounted to 2024) at a two percent discount rate, $1.3
billion at a three percent discount rate, or $0.9 billion at a seven
percent discount rate.
Taking into account both benefits and compliance costs over the
2026 through 2050 time period, it is estimated that the rule results in
present value net benefit (climate benefits, as monetized by
application of SC-HFCs, discounted at three percent, minus compliance
costs) of $6.9 billion (with compliance costs discounted at two
percent) to $7.5 billion (with compliance costs discounted at seven
percent).
As detailed in the RIA addendum and the Economic Impact and
Benefits TSD, these values represent an estimate of potential
incremental benefits and assume that industry would comply with
previous AIM Act regulations as outlined in the 2023 Technology
Transitions RIA Addendum \9\ but would not undertake certain
improvements to leak repair and refrigerant recovery practices in the
absence of this rulemaking that were not required by those regulations.
Since these assumptions are ultimately uncertain, in the RIA addendum
and the Economic Impact and Benefits TSD, EPA has also provided
estimates under an additional scenario in which leak repair and
recovery improvements do occur in the baseline, thus resulting in lower
incremental benefits. The assumptions in this alternative scenario
translate into reduced estimates of the incremental effect of the
provisions of this final rule since additional impacts are only
quantified insofar as they go beyond baseline assumptions of existing
policy and industry practice.
---------------------------------------------------------------------------

\9\ In the 2023 Technology Transitions RIA Addendum, EPA
analyzed a ``base case'' and a ``high additionality'' scenario. The
former is used as the baseline to analyze the base case scenario for
this rule. See the RIA addendum and Economic Impact and Benefits TSD
for additional details.
---------------------------------------------------------------------------

Some of the information regarding projected impacts of certain
aspects of the action was considered by EPA as it finalized this
rulemaking. To the extent that EPA has considered such information, it
is compiled in the Economic Impact and Benefits TSD, which is in the
docket for this rulemaking. While EPA has included estimates of the
costs and benefits of this rulemaking in the RIA addendum to provide
the public with information on the relevant costs and benefits of this
action and to comply with Executive Orders, the analysis in the RIA
addendum does not form a basis or rationale for any of the provisions
EPA is promulgating in this rulemaking.
Further, as explained previously in this section, although EPA is
using the SC-HFCs for purposes of some of the analysis in the RIA
addendum, this action does not rely on those SC-HFC estimates as a
record basis for the Agency's action. EPA would reach the conclusions
in this rule even in the absence of the SC-HFCs. Additional information
on these analyses can be found in section VI of this preamble, as well
as the RIA addendum, which is in the docket for this rulemaking.

II. General information

A. Do these regulations apply to me?

You may be potentially affected by the regulations established in
this final 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 Industrial 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.

[[Page 82687]]

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.
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.
------------------------------------------------------------------------

[[Page 82688]]

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

B. What is EPA's authority for these regulations?

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 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 Title VI of the CAA (42 U.S.C. 7675(k)(1)(C)).
Accordingly, the promulgation of these regulations under the AIM Act 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 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 rulemaking focuses on the third area--establishing certain
regulations for HFCs and their substitutes for the purposes of
maximizing reclaiming \10\ and minimizing releases of HFCs from
equipment and ensuring the safety of technicians and consumers.
---------------------------------------------------------------------------

\10\ For purposes of this provision, EPA views ``reclaim,''
``reclaiming,'' and ``reclamation'' as similar terms and when used
as nouns uses them interchangeably in this ER&R action.
---------------------------------------------------------------------------

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, which are covered by the
statute's provisions and are referred to as ``regulated substances''
\11\ under the Act (42 U.S.C. 7675(c)(1)). Congress also assigned an
``exchange value'' 12 13 to each regulated substance. EPA is
also authorized to designate additional substances as regulated
substances if they meet certain criteria; 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)).
---------------------------------------------------------------------------

\11\ As noted previously in this action, ``regulated substance''
and ``HFC'' are used interchangeably in this ER&R action.
\12\ EPA has determined that the exchange values included in
subsection (c) of the AIM Act are identical to the GWPs included in
the Intergovernmental Panel on Climate Change (IPCC) (2007). EPA
uses the terms ``global warming potential,'' ``GWP,'' and ``exchange
value'' interchangeably in this rulemaking.
\13\ 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 IPCC's Fourth Assessment Report is also referred to as IPCC
AR4.
---------------------------------------------------------------------------

The regulated substances addressed in this rulemaking 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 included in this
rulemaking for regulated substances apply regardless of whether the
regulated substance is used neat or in a blend. In taking this
approach, EPA is not concluding that a blend that uses one or more
regulated substances is itself a regulated substance. Rather, the
Agency is intending to regulate the regulated substance(s) used within
a ``blend of substances'' (42 U.S.C. 7675(c)(3)(B)(ii)), such that the
requirements applicable to equipment that uses regulated substances
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 55116, October 5, 2021), the 2024
Allocation Rule (88 FR 46836, July 20, 2023), and the 2023 Technology
Transitions Rule (88 FR 73098, October 24, 2023).\14\ 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
(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 concluding that a
blend that uses one or more such substitutes that are so regulated is
itself a regulated substance under subsection (c) of the Act, nor is
EPA designating the substitute a regulated substance under subsection
(c) of the Act. Rather, such substitutes are simply addressed, as
appropriate, under EPA's authority to promulgate regulations under
subsection (h) for certain practices, processes, or activities that
involve a substitute for a regulated substance.
---------------------------------------------------------------------------

\14\ In affirming this aspect of the 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 titled ``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. The phrase ``where appropriate'' in subsection
(h)(1) provides EPA discretion to reasonably determine how the
regulations under

[[Page 82689]]

subsection (h)(1) will apply because ``where appropriate'' clearly
leaves EPA flexibility to determine how to regulate in the context of
subsection (h). In exercising its discretion under this provision, EPA
has taken a number of considerations into account, such as: the text of
subsection (h)(1) itself, including the statutory purposes identified
in that provision; the anticipated effectiveness of the requirements
under consideration in serving those purposes; the intent of subsection
(h), considering the overall context and structure of the AIM Act; and
information and insight drawn from EPA's past experience with the same
or similar practices, processes, or activities, as well as sectors,
subsectors, and markets, gained from implementing other programs,
including under other provisions of the AIM Act and the CAA.
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.'' The statute's use of ``may'' conveys
the Agency discretion to choose whether to coordinate regulations under
subsection (h) with other Agency regulations, as well as determine the
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 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. This
action under subsection (h) of the AIM Act describes whether and where
EPA is 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 the Agency's
rationale on the appropriateness of coordinating with these
regulations. For example, coordination could include establishing
parallel requirements under subsection (h), where appropriate, as in
another regulatory regime so that a similar practice, process, or
activity in similar equipment is held to similar standards under both
regimes. 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 in this rulemaking do 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 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.
Through this rulemaking, EPA is establishing an ER&R program that
includes requirements for leak repair for certain equipment containing
a refrigerant that contains an HFC or certain substitutes for HFCs;
installation and use of ALD systems for certain equipment; the
servicing and/or repair of refrigerant-containing equipment with
reclaimed HFCs in certain RACHP subsectors; requirements for the
servicing, repair, disposal, or installation of fire suppression
equipment that contains HFCs to be done with recycled 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; and recovery of HFCs from disposable cylinders before
discarding. EPA is also establishing recordkeeping, reporting, and/or
labeling requirements pursuant to these provisions.
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 provisions,
as summarized here and explained in greater detail in the relevant
sections of this rulemaking, are designed to further those three
purposes described in subsection (h)(1); i.e., (1) maximizing
reclaiming, (2) minimizing the release of regulated substances from
equipment, and (3) ensuring the safety of technicians and consumers,
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, are to
focus 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

[[Page 82690]]

regulations that work together to help achieve the statutory purposes.
Together, the provisions in this action 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 in this action are directed at the
purpose of minimizing the release of a regulated substance from
equipment, but also help serve the purpose of maximizing the reclaiming
of a regulated substance. Those provisions set requirements for when
and how equipment must be serviced and leaks in equipment must be
repaired. Taking these actions will 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 provisions related to leak
repair also help serve the purpose of maximizing the reclaiming of
regulated substances.
Another example is the provisions for the installation and use of
ALD systems, which, similar to the leak repair provision, help address
the purposes articulated in subsection (h)(1). In general, ALD systems
will alert an owner or operator to leaks in refrigerant-containing
appliances well before any measurable decrease in the level of
performance of the equipment. Identifying and repairing leaks sooner as
a result of detecting the leak with an ALD system will further limit
the amount of regulated substance released from the leak and maintain
more of the regulated substance within the equipment, where it will be
available for eventual recovery and reclamation.
In addition to establishing requirements for the management of HFCs
and substitutes, this action includes provisions designed to support
enforcement and compliance, including recordkeeping and reporting. As
stated 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 and ones like them 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
articulated in subsection (h)(1), even if they may be less directly
connected to those purposes if viewed in isolation.
EPA is also establishing alternative RCRA standards for ignitable
spent refrigerants being recycled for reuse. These standards are not
part of the regulations under subsection (h)(1) of the AIM Act but
rather involve revisions to independent regulatory provisions, under a
separate and distinct statutory authority. More specifically, the
action under RCRA involves regulatory changes to 40 CFR parts 261
through 271, and those changes are made under the authority of sections
2002, 3001, 3002, 3003, 3004, 3006, and 3010 of the Solid Waste
Disposal Act of 1965 (SWDA), as amended by the Resource Conservation
and Recovery Act of 1976, 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 \15\[thinsp]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 carbon dioxide (CO<INF>2</INF>).
---------------------------------------------------------------------------

\15\ 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 \16\ 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 will substantially reduce future emissions,
leading to a peaking of HFC emissions before 2040.17 18 For
additional context, EPA further notes that the G7 Climate, Energy, and
Environment ministers met in April 2024 and issued a joint declaration,
which included statements recognizing the importance of reducing non-
CO<INF>2</INF> carbon emissions and other climate pollutants, including
HFCs, and supporting robust implementation of the Kigali Amendment.\19\
The joint declaration \20\ also included the commitment of the relevant
governments to, among other things, take concrete actions to reduce
non-CO<INF>2</INF> emissions and promote the proper choice of
refrigerants as well as the management of HFCs throughout their
lifecycle including through leak prevention and end-of-life management
of refrigerants.
---------------------------------------------------------------------------

\16\ 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>.
\17\ Ibid.
\18\ A recent study estimated that global compliance with the
Kigali Amendment is expected to lower 2050 annual emissions by 3.0-
4.4 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>.
\19\ The Ministerial meeting on Climate, Energy and Environment
ends with the adoption of a joint communiqu[eacute], April 30, 2024,
available: <a href="https://www.g7italy.it/en/the-ministerial-meeting-on-climate-energy-and-environment-ends-with-the-adoption-of-a-joint-communique/">https://www.g7italy.it/en/the-ministerial-meeting-on-climate-energy-and-environment-ends-with-the-adoption-of-a-joint-communique/</a>.
\20\ Climate, Energy and Environment Ministers' Meeting
Communiqu[eacute], April 29-30, 2024, available: <a href="https://www.g7italy.it/wp-content/uploads/G7-Climate-Energy-Environment-Ministerial-Communique_Final.pdf">https://www.g7italy.it/wp-content/uploads/G7-Climate-Energy-Environment-Ministerial-Communique_Final.pdf</a>.
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Atmospheric observations of most currently measured HFCs confirm
their abundances are increasing at accelerating rates. Total emissions
of HFCs increased by 23 percent from 2012 to 2016 \21\ and a further 19
percent from 2016 to 2020. The four most abundant HFCs in the
atmosphere, in GWP-weighted terms, are HFC-134a, HFC-125, HFC-23, and
HFC-143a.\22\
---------------------------------------------------------------------------

\21\ World Meteorological Organization (WMO), Scientific
Assessment of Ozone Depletion: 2018, World Meteorological
Organization, Global Ozone Research and Monitoring Project--Report
No. 58, 588 pp., Geneva, Switzerland, 2018. Available at: <a href="https://ozone.unep.org/sites/default/files/2019-05/SAP-2018-Assessment-report.pdf">https://ozone.unep.org/sites/default/files/2019-05/SAP-2018-Assessment-report.pdf</a>.
\22\ WMO, 2022.
---------------------------------------------------------------------------

HFCs excluding HFC-23 accounted for a radiative forcing \23\ of
0.025 W/m \2\

[[Page 82691]]

in 2016, rising to 0.037 W/m\2\ in 2020. 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.\24\ If the Kigali Amendment is fully implemented, it 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.\25\
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\23\ 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>.
\24\ 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.
\25\ 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).\26\
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\26\ 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 the Allocation Framework Rule (86 FR 55116,
October 5, 2021) as updated under the 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 through 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 regarding these estimates is provided in the
Allocation Framework Rule RIA and the 2024 Allocation Rule RIA
Addendum, which can be found in the docket for this rulemaking.
The Agency calculated incremental avoided consumption and emissions
under the 2023 Technology Transitions Rule (88 FR 73098, October 24,
2023). HFC consumption reductions beyond those from the HFC phasedown
as stipulated in the previous paragraph ranged from 720 to 1,113
MMTCO<INF>2</INF>e for the years 2025 through 2050. EPA also estimated
that the 2023 Technology Transitions Rule will achieve an additional 83
to 876 MMTCO<INF>2</INF>e of avoided emissions over these years, 2025
through 2050. The 2023 Technology Transitions Rule RIA Addendum, as
well as the TSD, Costs and Environmental Impacts, are available in the
docket for this rulemaking.

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. This section provides some scientific
background on climate change to offer additional context for this
rulemaking and 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 Agency 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 CAA section 202(a) (74
FR 66496, December 15, 2009).\27\ 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 subsequent 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

[[Page 82692]]

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). Children, elderly people, and poor people are among the most
vulnerable to these climate-related health effects (74 FR 66498,
December 15, 2009).
---------------------------------------------------------------------------

\27\ In describing these 2009 Findings, EPA is neither reopening
nor revisiting them.
---------------------------------------------------------------------------

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 \28\
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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\28\ 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).
---------------------------------------------------------------------------

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).\29\ 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 Endangerment 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).
---------------------------------------------------------------------------

\29\ In describing these 2016 Findings, EPA is neither reopening
nor revisiting them.
---------------------------------------------------------------------------

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 United States, while agricultural and ecological drought has
increased in the Western United States, along with more intense and
larger wildfires.\30\ 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.'' \31\ These updated observations and
projections document the rapid rate of current and future climate
change both globally and in the United States.32 33
---------------------------------------------------------------------------

\30\ An additional resource for indicators can be found at
<a href="https://www.epa.gov/climate-indicators">https://www.epa.gov/climate-indicators</a>.
\31\ 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. P[eacute]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, Cambridge, United Kingdom and
New York, NY, USA, pp. 3-32, doi:10.1017/9781009157896.001.
\32\ 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>.
\33\ IPCC, 2021.
---------------------------------------------------------------------------

C. What regulatory programs addressing refrigerants has EPA already
established under the Clean Air Act?

EPA is issuing regulations that are designed to establish a
comprehensive HFC management program that serves purposes including
maximizing HFC reclamation and minimizing the release of HFCs from
equipment while coordinating these efforts with other similar programs
where appropriate. 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 and
air conditioning applications under CAA section 608, as well as 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, CAA section 608(a)
requires EPA to establish standards and requirements regarding the use
and disposal of class I and class II substances.\34\ The second
component, CAA 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, CAA section
608(c), prohibits the knowing venting, release, or disposal of ODS
refrigerants \35\ and their substitutes \36\ 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.'' CAA 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. CAA section 608(c)(2)
extends CAA section 608(c)(1) to substitute refrigerants, effective
November 15, 1995. CAA 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

[[Page 82693]]

substitute refrigerant ``does not pose a threat to the environment.''
---------------------------------------------------------------------------

\34\ 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 ODS.
\35\ 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.
\36\ The term ``substitute'' for the purposes of the regulations
under CAA section 608 is defined at 40 CFR 82.152.
---------------------------------------------------------------------------

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 through 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 CAA section 608, EPA has used
the term ``non-exempt substitute'' to refer to non-ozone depleting
refrigerants that have not been exempted from the venting prohibition
under CAA section 608(c)(2) and 40 CFR 82.154(a) in the relevant end
use. Similarly, the term ``exempt substitute'' refers to a non-ozone
depleting refrigerant that has been exempted from the venting
prohibition under CAA section 608(c)(2) and 40 CFR 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 updated
existing refrigerant management requirements and extended the full set
of the subpart F refrigerant management requirements, which prior to
that rule applied only to ODS refrigerants,\37\ to non-exempt
substitute refrigerants, such as HFCs and hydrofluoroolefins (HFOs).
See 81 FR 82272 (November 18, 2016), hereafter ``2016 CAA Section 608
Rule.'' Among the subpart F requirements extended to non-exempt
substitute refrigerants in the 2016 CAA Section 608 Rule were
provisions that restricted the servicing of appliances and the sale of
refrigerant to certified technicians; specified the proper evacuation
levels before opening an appliance; required the use of certified
refrigerant recovery and/or recycling equipment; required refrigerant
be recovered from appliances prior to disposal; required appliances
have a servicing aperture or process stub to facilitate refrigerant
recovery; required refrigerant reclaimers be certified to reclaim and
sell used refrigerant; and established standards for technician
certification programs, recovery equipment, and 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. It also 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.
---------------------------------------------------------------------------

\37\ 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 section 82.154(a).
---------------------------------------------------------------------------

After promulgation, the Agency reviewed the 2016 CAA Section 608
Rule, focusing in particular on whether the Agency had the statutory
authority to extend the full set of 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 (83 FR 49332, October 1, 2018).\38\ In 2020, EPA published
a final rule (85 FR 14150, March 11, 2020, hereafter ``2020 CAA Section
608 Rule'') withdrawing 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 in the previous paragraph, were left in place for
appliances containing HFCs and other non-exempt substitute
refrigerants. There were no changes to any of the regulatory
requirements for ODS in the 2020 CAA Section 608 Rule.
---------------------------------------------------------------------------

\38\ 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, the 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.\39\
In 2020, the Natural Resources Defense Council (NRDC) and a group of
State and municipal petitioners \40\ filed petitions for judicial
review of the 2020 CAA Section 608 Rule in the D.C. Circuit. NEDA/CAP
also filed an administrative petition regarding the 2020 CAA Section
608 Rule, styled as a petition for reconsideration or in the
alternative a petition for rulemaking.\41\ These four petitions for
review were all consolidated (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.
---------------------------------------------------------------------------

\39\ 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>.
\40\ 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.
\41\ 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>.
---------------------------------------------------------------------------

The E.O. issued on January 20, 2021, ``Executive Order on
Protecting Public Health and the Environment and Restoring Science to
Tackle the Climate Crisis,'' directed review of certain agency actions
taken between January 20, 2017, and January 20, 2021 (86 FR 7037,
January 20, 2021). The 2020 CAA Section 608 Rule was one of the actions
subject to review. In light of this review and the Agency's
consideration of subsection (h) of the AIM Act, EPA has developed this
rulemaking, which, among other things, involves evaluating the
application of leak repair requirements to appliances using HFCs and
substitute refrigerants under subsection (h). Because this action is
rooted in EPA's authority under the AIM Act, this rulemaking does not
reopen or otherwise address the question of the authority for such
requirements under the CAA. Similarly, EPA is not reopening or
revisiting any of the regulations under CAA section 608 in this
rulemaking.

[[Page 82694]]

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'' \42\ 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 CAA 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
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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\42\ 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.
---------------------------------------------------------------------------

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 \43\ 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. CAA 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.
---------------------------------------------------------------------------

\43\ 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).
---------------------------------------------------------------------------

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 through 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 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.\44\ EPA based the regulatory equipment standards in
subpart B on those developed by the Society of Automotive Engineers
(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 meets the criteria for
substantially identical equipment, was approved under CAA section 609
for use in the servicing of MVACs at that time.
---------------------------------------------------------------------------

\44\ 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)

[[Page 82695]]

evaluations of the substitute, or equipment tests under various
conditions.

IV. How is EPA regulating the management of HFCs and their substitutes?

As described in the following sections, EPA is establishing an ER&R
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
installation and use of ALD systems for certain equipment; requirements
for the servicing and/or repair of certain refrigerant-containing
equipment; requirements for 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,
including requirements for the initial installation and servicing and/
or repair of fire suppression equipment with recycled HFCs, as well as
requirements related to technician training in the fire suppression
sector; and recovery of HFCs from disposable cylinders before
discarding. As discussed in greater detail in section X of this
preamble, EPA intends for the regulatory provisions established under
subsection (h) of the AIM Act in this final action to be able to stand
independently from one another and has designed them accordingly. For
example, the leak repair requirements for refrigerant-containing
appliances are designed to operate independently from the requirements
for servicing, repair, disposal, or installation of fire suppression
equipment.

A. What definitions is EPA implementing under subsection (h)?

EPA has operated a refrigerant management program for decades under
the CAA. More recently, EPA established regulatory programs related to
the HFC phasedown and the technology transitions provisions under the
AIM Act. Rules implementing those CAA and AIM Act programs have
included defined terms, which EPA was mindful of when proposing and
finalizing definitions for the ER&R program under subsection (h) of the
AIM Act.
The Allocation Framework Rule (86 FR 55116, October 5, 2021)
established regulatory definitions at 40 CFR part 84, subpart A to
implement the framework for phasing down HFCs under the AIM Act, with
certain revisions to the definitions section at 40 CFR 84.3 (see 88 FR
46836, July 20, 2023).\45\ Subsequently, the 2023 Technology
Transitions Rule (88 FR 73098, October 24, 2023) established additional
regulatory definitions in 40 CFR part 84, subpart B, at 40 CFR 84.52 to
implement subsection (i) of the AIM Act. To maintain consistency,
except as otherwise explained in this rule, EPA generally intends to
use terms in this rulemaking, and in the new subpart C established by
this rule, consistent with their definitions in subparts A and B, but
there may be exceptions, such as where one term has different
definitions under different subparts. The definitions under subpart A
had already been finalized when this rule was proposed. Accordingly,
consistent with the proposal, for terms not defined in subpart C but
that are defined in subpart A (40 CFR 84.3) those definitions apply. As
noted previously, EPA also considered the definitions in subpart B (40
CFR 84.52) in establishing the definitions and regulations in subpart C
but is not incorporating those definitions into subpart C, in part to
avoid potential confusion if the same term was defined differently in
subparts A and B, but not defined in subpart C. EPA is also
establishing definitions for terms that are applicable only under 40
CFR part 84, subpart C, and do not have counterparts in the definitions
under 40 CFR part 84, subparts A or B.
---------------------------------------------------------------------------

\45\ The revisions in 40 CFR 84.3 are described in EPA's
Allowance Allocation Methodology for 2024 and Later Years rule,
which was published on July 20, 2023 (88 FR 46836). That rulemaking
focuses on the second phase of the HFC phasedown and, among other
things, establishes the allocation methodology for the ``general
pool'' of HFC production and consumption allowances for 2024 through
2028. Available at: <a href="https://www.federalregister.gov/documents/2023/07/20/2023-14312/phasedown-of-hydrofluorocarbons-allowance-allocation-methodology-for-2024-and-later-years">https://www.federalregister.gov/documents/2023/07/20/2023-14312/phasedown-of-hydrofluorocarbons-allowance-allocation-methodology-for-2024-and-later-years</a>.
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Many of the terms and definitions considered in this action are
similar to those used to implement programs under CAA sections 608 and
609, with only limited changes as needed to conform with the AIM Act or
this action. EPA considered these previously defined terms, from 40 CFR
82.152 and 40 CFR 82.32, where they are used in the same or
substantially similar manner. The regulated community for these
regulations under subsection (h) and those under CAA sections 608 and
609 overlap; therefore, maintaining the same or similar definitions,
where consistent with AIM Act requirements and the purposes of this
action, facilitates implementation by those who have been using and are
familiar with these terms. Because EPA's authority under the AIM Act
extends beyond the sectors covered by 40 CFR part 82, subpart F, where
it is necessary or helpful for clarity, EPA is specifying certain
definitions that apply to the terms as they refer to refrigerant-
containing equipment or as they apply to fire suppression equipment
(see, e.g., the definition for ``disposal''). EPA may consider adding
additional subsectors in a future rulemaking and accordingly may
consider updating these definitions in the future.
1. Terms That Did Not Generate Comment and That EPA Is Finalizing as
Proposed
Many proposed definitions did not garner specific comment. For the
reasons discussed in the proposed rule, EPA is finalizing the following
terms substantively as proposed, although in some instances with minor
edits that do not alter their meaning (e.g., a non-substantive change
in a word's tense or removal of redundant language \46\):
---------------------------------------------------------------------------

\46\ EPA notes that in a few instances the proposed definition
for a term included a phrase like ``as used in this subpart'' or
``for purposes of this subpart.'' EPA is not including those phrases
in the final definitions, as the second sentence of Sec. 84.102 in
the final rule already makes clear that the definitions are for
``purposes of this subpart C.''
---------------------------------------------------------------------------

Certified technician means a technician that has been certified per
the provisions at 40 CFR 82.161.
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.
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 \47\
into the environment.
---------------------------------------------------------------------------

\47\ As described in Section IV.F.1, EPA views the terms, ``fire
suppressants'' and ``fire suppression agents'' as interchangeable
for this rule.
---------------------------------------------------------------------------

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

[[Page 82696]]

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.
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 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.
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 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 in
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] TR11OC24.001

(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] TR11OC24.002

EPA further notes that, as discussed in section IV.C.3 of this
preamble, owner or operators may preemptively repair leaks prior to
adding refrigerant and calculating the leak rate for a refrigerant-
containing appliance. After the completion of preemptive repair, an
owner or operator must calculate the leak rate to see if the
refrigerant-containing appliance was leaking above the applicable leak
rate threshold and complete the full suite of leak repair requirements
as described in section IV.C.3 (e.g., verification tests, leak
inspections, etc.) if the appliance was leaking above the applicable
threshold. If the refrigerant-containing appliance was found to be
leaking below the applicable leak rate threshold then no further action
is necessary after the completion of the preemptive repair.
Alternatively, an owner/operators may use the amount of refrigerant
lost in lieu of the amount of refrigerant added to calculate the leak
rate 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

[[Page 82697]]

affected isolated section or component of an appliance, to at least
atmospheric pressure, and to temporarily shut down that appliance.
Motor vehicle, 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 conditioner (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 in 40 CFR 82.32.
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.
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.
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 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.
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.
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.
Stationary refrigerant-containing equipment means refrigerant-
containing equipment, as defined in this subpart, that is not an MVAC
or MVAC-like appliance, as defined in this subpart.
EPA notes that for this definition the phrase ``motor vehicle air
conditioner'' was used in the proposed definition, but in the final
definition EPA is replacing that phrase with its abbreviation ``MVAC''
to maintain consistency with other definitions in this rule. This
change does not alter the meaning of the term.
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 appliance into the
environment. Activities reasonably expected to violate 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 40 CFR 82.156 are not reasonably expected to release
refrigerants unless the activity includes adding refrigerant to the
appliance. Technicians include but are not limited to installers,
contractor employees, in-house service personnel, and owners and/or
operators of refrigerant-containing appliances.
EPA further notes that this definition deviates slightly from the
definition of ``technician'' at 40 CFR 82.152 to conform with the AIM
Act grant of authority. EPA is also defining ``certified technician''
to make it clear that EPA is referring to persons certified per 40 CFR
82.161 for the purposes of these regulations. When specifically
referring to technicians certified under 40 CFR part 82, subpart B, the
term ``609-certified technician'' is used.
2. Terms That Received Comment or That EPA Is Modifying
This section discusses comments received on specific proposed
definitions, EPA's responses to those comments, and any changes made to
the final definitions in response to those comments. It also includes
discussion of certain modifications in the final rule to definitions
that did not receive comment as discussed previously.
Comfort cooling. EPA proposed to define this term as ``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.''
As described below, after considering public comment on this
definition, EPA is modifying its definition of ``comfort cooling'' to
include dual-function heat pumps as an additional example of the term.
Comment: One commenter requested that EPA's definition of ``comfort
cooling'' include single-function (heat only) and dual-function
(heating and cooling) heat pump appliances.
Response: EPA agrees that dual-function heat pumps are included
within the definition of ``comfort cooling'' because those appliances
provide cooling. To provide another relevant example of comfort cooling
applications, EPA is adding dual-function heat pumps to the
illustrative list of examples in the definition. EPA is not including
single-function heat pump applications as an example of an application
included in ``comfort cooling'' because EPA does not view it as fitting
within this particular category as the definition is currently drafted.
EPA may in the future consider proposing to include single-function
heat pump applications under comfort cooling or under a different
category of equipment.
Commercial refrigeration. EPA proposed this definition to mean
``the refrigerant-containing appliances used in the retail food and
cold storage warehouse subsectors. Retail food appliances include the
refrigeration equipment found in supermarkets,

[[Page 82698]]

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.''
EPA is finalizing two modifications to the proposed definition of
``commercial refrigeration.'' Both modifications involved replacing the
term ``refrigeration equipment'' in sentences two and three of the
proposed definition of the term to ``refrigeration-containing
appliance'' in the finalized term. These changes were made because
``refrigeration equipment'' is not a defined term under this subpart,
but ``refrigeration-containing appliance'' is. EPA did not receive
comment on the definition of ``commercial refrigeration.''
Disposal. EPA's proposed definition of ``disposal'' (see 88 FR
72216, 72298, October 19, 2023) applied to ``refrigerant-containing
appliances.'' This was done to maintain consistency with the definition
of ``disposal'' in 40 CFR 82.161 which applies to ``appliances.'' EPA
is finalizing a definition of disposal with two parts, with the first
part relating to ``refrigerant-containing equipment'' and the second
part relating to ``fire suppression equipment.'' Furthermore, in the
first part of the final definition EPA is using the term ``refrigerant-
containing equipment'' instead of ``refrigerant-containing appliance''
to more fully align with the regulatory definition with how the term
disposal is used under subsection (h)(1) of the AIM Act, which states
``the Administrator shall promulgate regulations to control, where
appropriate, any practice process or activity regarding servicing,
repair, disposal, or installation of equipment (emphasis added).''
``Refrigerant-containing equipment'' is broader than ``refrigerant-
containing appliance'' and includes everything covered under the
definition of ``refrigerant-containing appliance'' (e.g., any air
conditioner, MVAC, refrigerator, chiller, or freezer) while also
including refrigerant-containing components. However, the regulatory
requirements related to disposal of refrigerant-containing equipment
established in this final action at 84.106 apply to refrigerant-
containing appliances (rather than refrigerant-containing equipment),
and this change in the definition is not intended to broaden the scope
of these requirements.
EPA added a second part to the final definition of disposal to
distinguish disposal of fire suppression equipment. Since this final
rule regulates the disposal of fire suppression equipment, which may
differ from the disposal of refrigerant-containing equipment, the
Agency is specifying how the term ``disposal'' relates to fire
suppression equipment in this subpart, for greater clarity of the
regulatory provisions. This final definition of disposal is analogous
to the definition of ``disposal of halon-containing equipment'' in the
halon emissions reduction requirements at 40 CFR part 82, subpart H,
which EPA referenced in the proposal, describing its intent to propose
requirements similar to those in subpart H. The final definition
parallels the definition of disposal at 40 CFR 82.260, with the words
``fire suppression equipment'' replacing the term ``halon-containing
equipment'' to maintain consistency with regulations for the disposal
of halon-containing equipment, including halon-containing equipment
used in fire suppression applications. The revised definition can be
read in full below:
Disposal, as it relates to refrigerant-containing equipment, means
the process leading to and including:
(1) The discharge, deposit, dumping, or placing of any discarded
refrigerant-containing equipment into or on any land or water;
(2) The disassembly of any refrigerant-containing equipment 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 equipment 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 equipment for
reuse of its component parts; or
(5) The recycling of any refrigerant-containing equipment for
scrap.
Disposal, as it relates to fire suppression equipment, means the
process leading to and including:
(1) The discharge, deposit, dumping, or placing of any fire
suppression equipment into or on any land or water;
(2) The disassembly of any fire suppression equipment for
discharge, deposit, dumping, or placing of its discarded component
parts into or on any land or water; or
(3) The disassembly of any fire suppression equipment for reuse of
its component parts.
Comment: One commenter asserted that the proposed definition of
disposal (which as originally proposed was specific to a ``refrigerant-
containing appliance'') is inconsistent with the principles of safe
disposal under 40 CFR 82.155 and with the definition of disposal under
RCRA. The commenter asserted that parts 4 and 5 of the definition
incorrectly conflate two different processes (disassembly and
recycling). The commenter further stated that since there are ``safe
disposal'' regulations at 40 CFR 82.155, it is counterproductive to
have a definition of disposal that includes principles of recycling,
because disposal and recycling are entirely different processes. The
commenter also stated that the definition of disposal under 40 CFR
82.155 and 40 CFR 84.102 is incompatible with RCRA's definition of
disposal under 40 CFR 260.10, which does not include practices of
disassembly or recycling. The commenter requested that EPA align the
proposed definition with those in 40 CFR 82 subparts B and F to
minimize complications and contradictions between these AIM Act
subsection (h) regulations and CAA title VI regulations.
Response: EPA is finalizing a definition of ``disposal,'' as it
relates to refrigerant-containing equipment, that parallels the
definition in 40 CFR 82.152. To the extent the commenter is suggesting
that the proposed definition of disposal is inconsistent with the
requirements in 82.155, EPA disagrees. Rather, the definition in 40 CFR
84.102 is analogous to the definition of disposal in 40 CFR part 82,
subpart F at 40 CFR 82.152, the safe disposal provisions also found
subpart F at 40 CFR 82.155, as 82.155 does not contain a separate
definition of ``disposal.'' To the extent this comment relates to the
requirements of or suggestions to change 82.155 or any other
regulations under CAA title VI, it is outside the scope of this
rulemaking and requires no further response.
EPA disagrees that parts 4 and 5 of the proposed definition (see at
88 FR 72216, 72298, October 19, 2023) are incorrectly conflated.
Recycling and disassembly for reuse are distinct processes under these
regulations, but they are both end-of-life practices for refrigerant-
containing equipment. The definition is intended to include a range of
end-of-life practices to ensure the requirements cover the range of
relevant activities. The commenter has not provided sufficient
rationale for why the relevant requirements under this subpart should
not apply to both disassembly and recycling. Accordingly, the Agency is
retaining both 4 and 5 in the definition as it relates to refrigerant-
containing equipment.
The definitions of recycle and disposal under RCRA are outside the
scope of this rulemaking under subsection (h) of the AIM Act and this

[[Page 82699]]

action to establish the definitions that will apply for the regulations
implementing that provision. For information on public comments on the
proposed RCRA alternative standards, and EPA's responses, please see
RCRA Alternative Standards for Ignitable Spent Refrigerants: Response
to Comments Document, available in the docket.
Equipment. EPA proposed this definition to mean ``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.''
EPA is modifying its definition of equipment to specify that fire
suppression equipment is also included under the definition of
equipment. This revision is intended to clarify the definition by
providing another illustrative example of equipment that is included in
the definition. EPA does not view this list of examples as being
exhaustive, however as it would be unnecessarily cumbersome to list all
of the equipment that is included in the regulatory definition. For
example, while not expressly listed in the definition. EPA also
understands this definition to include direct and indirect ALD systems,
including point detection systems, are a subset of equipment because
ALD systems are devices that detect regulated substances or substitutes
for regulated substances. EPA also added the word ``to'' after the word
``connected'' to maintain consistency with other definitions that use
the phrase ``connected to.''
Fire suppression equipment. EPA's proposed definition of this term
(see 88 FR 72216, 72298, October 19, 2023) described what would be
included in the definition and also stated, among other things, that
the term would not include mission-critical military end uses and
systems used in deployable and expeditionary situations. EPA is
modifying the final definition by replacing the phrase ``mission-
critical military end uses and systems'' with ``military equipment'' to
provide greater clarity on situations in which military equipment are
exempt from certain provisions of the rule. As discussed later in this
section, EPA is amending the definition of refrigerant-containing
equipment in the same manner.
EPA intended the proposed definition to clarify that certain
military equipment would not be subject to regulatory requirements in
certain situations. The reference to ``mission-critical military end
uses and systems'' was intended to be analogous to the use of the
similar term ``mission-critical military end uses'' in 40 CFR 84.13(a).
After further reflection and consideration of the comments submitted,
the Agency has concluded that it would be clearer to separately address
the exemption for mission-critical military end uses, and that this
approach would better align with how these end-uses are treated under
other provisions of the AIM Act. Accordingly, as noted in section I.B,
EPA is also establishing an exemption from the ER&R regulations for
mission-critical military end uses, as listed at 40 CFR 84.13(a), for a
year or years for which the application receives an application-
specific allowance as defined at 40 CFR 84.3. This approach mirrors the
approach in regulations established under the 2023 Technology
Transitions Rule at 84.56(a)(2) and better aligns with the regulations
under 84.13. Given the addition of this exemption to the regulations
finalized in this rule (see 84.114(b)), there is no need to exclude
mission-critical military end uses from the definition of fire
suppression equipment. With respect to military systems used in
deployable and expeditionary situations, as stated in the proposal,
there are situations in which the unique design and use of this
equipment makes it impossible to recover fire suppression agents during
the service, repair, disposal, or installation of such equipment.
Because this rule does not define ``end uses'' or ``systems,'' EPA is
using the broader term ``equipment'' to improve understanding and
clarify its intent that no military equipment used in deployable and
expeditionary situations is subject to the regulations for fire
suppression equipment in this rule.
Comment: One commenter requested that EPA exclude individual fire
extinguishers from the definition of ``fire suppression equipment.''
Another commenter supported exempting mission-critical military end
uses from certain requirements of the rule. This commenter suggested
that EPA could improve the clarity of the rule by stating that specific
requirements (e.g., leak repair, ALD systems) do not apply to mission-
critical end uses and systems, rather than embedding the exemption in
the definitions of ``refrigerant-containing equipment'' and ``fire
suppression equipment.'' The commenter further stated that
affirmatively stating that certain requirements do not apply to
mission-critical military end uses would make this rule consistent with
the Allocation Framework Rule and would help improve compliance with
this final rule.
Response: EPA disagrees with the commenter's request to exclude
individual fire extinguishers from the definition of fire suppression
equipment. EPA has a long history under the CAA title VI regulations of
considering fire suppression as both streaming (e.g., fire
extinguishers) and total flooding applications. The commenter did not
provide sufficient rationale for changing that approach in this rule
and EPA is concerned that doing so would limit the ability of this rule
to achieve its intended purpose with respect to minimizing releases
from fire suppression equipment.
In response to the comment suggesting that EPA exempt mission-
critical military end uses from certain requirements of the rule
separate from the definition, as described above, EPA notes, that it
has created a separate exemption in these regulations for mission-
critical military end uses, as listed at 40 CFR 84.13(a), for a year or
years for which that application receives an application-specific
allowance as defined at 40 CFR 84.3. As explained above, EPA is taking
this approach, rather than listing the exemption in each specific
requirement, as that approach better aligns with the approach under
other AIM Act rules, which should ease understanding of the exemption
and facilitate implementation and compliance.
Industrial process refrigeration. EPA is finalizing this term as
proposed to mean ``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.''
Comment: One commenter stated that in the Technology Transitions
program, EPA determined appliances that cool data centers, information
technology equipment facilities (ITEFs), computer room cooling
equipment, communications rooms, and appliances associated with cooling
other spaces dedicated to maintaining the operating temperatures of
electronic devices were not IPR or comfort cooling. The commenter
further stated that under 40 CFR part 82, subpart F these refrigerant-
containing devices are comfort cooling. The commenter requested that
EPA

[[Page 82700]]

specify whether these appliances are comfort cooling or IPR. The
commenter stated that all industrial facilities have data centers or
computer rooms and need to understand how to properly sort their
appliances because this impacts leak rate repair triggers and appliance
repair time.
Response: The commenter is correct that the definition of ``comfort
cooling'' in 40 CFR part 82, subpart F codified at 40 CFR 82.152
includes appliances that cool data centers, ITEF, computer rooms,
communications rooms, and electronic devices. EPA intends for its
definition of ``industrial process refrigeration'' under these
regulations to parallel the definition within 40 CFR 82.152 as many of
these requirements established for industrial process refrigeration and
comfort cooling in this rule are analogous to those that apply under 40
CFR part 82, subpart F and EPA anticipates that using parallel
definitions will facilitate understanding of the rule's requirements
amongst regulated entities and support compliance for those entities
that already have established approaches to complying with similar
requirements for similar equipment under subpart F. Accordingly, the
appliances that cool data centers, ITEF, computer room cooling
equipment, communications rooms, and appliances associated with cooling
other spaces dedicated to maintaining the operating temperatures of
electronic devices are considered comfort cooling for purposes of the
ER&R program established in this rule.
Installation. EPA is finalizing this term as proposed to mean ``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.''
The definition of ``installation'' for purposes of the ER&R program
is broader than a definition for a similar term used in the Technology
Transitions program, which is found in 40 CFR part 84, subpart B.
Specifically, the definition for ``install'' in subpart B refers only
to the completion of a field-assembled system's circuit.
``Installation'' in this rulemaking under subsection (h) includes
processes, practices and activities related to installation of
equipment that are encompassed in the Technology Transitions program's
definitions for both ``installation'' and ``manufacture'' at 40 CFR
84.52, as well as other types of installation. EPA is establishing a
broader definition under subsection (h) to encompass the full range of
practices, processes, or activities that are relevant to the
installation of equipment that is regulated under this action, or that
may be regulated under a future rule under subsection (h). Included
under this definition of installation is the process of setting up of
ALD systems for use, because ALD systems are considered equipment under
this subpart.
Comment: One commenter stated that the activity of installation is
commonly understood to relate to physically placing equipment in a
facility or location, not to the initial charging of equipment during
manufacture nor the field charging of refrigeration systems during
construction. The commenter further maintained that read together, the
terms that Congress used in subsection (h)(1) (``servicing, repair,
disposal, or installation of equipment'') naturally refer to work
performed on the equipment, not to the design of the equipment or the
choice of which refrigerant is used in the equipment. The commenter
asserted that if Congress had intended for EPA to have the ability to
mandate what type of refrigerant is used in the equipment, it would
more naturally have listed installation first in the serialization of
activities, because installation is the first activity in the temporal
sequence, followed by servicing and repair, and ultimately disposal of
the equipment at end of life (EOL).
Another commenter stated that subsection (h)(1) contained limited
authority regarding servicing, repair, disposal, and installation of
equipment, and that the scope of any EPA regulations to implement
subsection (h)(1) must remain within these parameters. The commenter
further stated that subsection (h) does not contain any provision
concerning the ``initial'' charging of equipment prior to sale or
distribution--nor is there any specific mention in the statute of any
subsequent charging of existing equipment. The commenter also stated
that ``servicing'' was not defined in the proposed rule and that EPA
has not clarified what constitutes ``servicing'' of existing equipment,
although, charging of existing equipment could constitute
``servicing.''
Response: EPA disagrees with commenters that the term
``installation'' as used in context in subsection (h)(1) of the AIM Act
does not include the addition of refrigerant to an appliance. Read in
context, in relevant part, subsection (h) directs EPA to establish
regulations to ``control, where appropriate, any practice, process, or
activity regarding the . . . installation of equipment . . . that
involves'' an HFC or a substitute for an HFC or the reclaiming of an
HFC or a substitute for an HFC used as a refrigerant. The commenter's
overly narrow interpretation is not the best reading of this provision.
For example, it does not account for the full range of practices,
processes, or activities that are involved in installation of
equipment, and it does not recognize the scope of discretion that
subsection (h)(1) conveys to EPA. In directing EPA to regulate ``any
practice, process, or activity regarding the . . . installation of
equipment'' ``where appropriate'' Congress afforded EPA discretion to
determine what control measures are appropriate for particular
practices, processes, and activities, and also to reach practices,
processes, and activities that regard--or relate to--installation,
rather than limiting EPA to only addressing practices, processes, and
activities that occur directly during the placement of equipment on the
site. Thus, EPA interprets this provision to convey regulatory
authority that extends to a range of practices, processes, or
activities regarding installation, and that includes activities both
before and after placement on the site. From a technical perspective,
an important part of installation of equipment is to prepare it for
use, and adding refrigerant to refrigerant-containing equipment is a
critical step in preparing the equipment for use, as the equipment
cannot serve its intended use until it has been charged. Thus, charging
is part of installation, and activities related to charging of
equipment are related to the installation process and within this grant
of authority under subsection (h)(1) concerning practices, processes,
or activities regarding installation. Based on this interpretation of
the statutory text, EPA is including the charging of equipment in the
definition of ``installation'' in these regulations implementing
subsection (h)(1). EPA agrees with the commenters to the extent that
they assert that the terms that Congress used in subsection (h)(1)
(``servicing, repair, disposal, or installation of equipment'') include
work performed on the equipment, but for the reasons explained earlier
in this response, EPA disagrees that the regulatory authority under
subsection (h)(1) is limited to work performed directly on equipment.
EPA disagrees with one commenter's suggested definition of
``installation'' as it would end at mere placement of the equipment on
site and exclude work performed to

[[Page 82701]]

allow the system to function. Given that the text of subsection (h)(1)
of the AIM Act expressly provides that the regulations established are
to address practices, processes, or activities regarding the
installation of equipment ``that involves a regulated substance or a
substitute for a regulated substance,'' EPA concludes it is not
appropriate to create a definition that focuses solely on work on the
equipment and excludes work that plainly ``involves'' an HFC or
substitute for an HFC, such as charging equipment. Further the Agency
does not ascribe the same meaning to the sequencing of the terms as one
of the commenters does, and the commenter's interpretation is not the
best reading of the statutory text as it could eliminate many aspects
of installation without any indication that Congress intended for the
term to be so limited. Further, there could be other reasons that
Congress put ``installation'' at the end of the sequence. For example,
Congress may have been aware of mirroring similar provisions in CAA
section 608, such as section 608(a)(1) and (2), which convey authority
to establish regulations related to the ``service, repair, or disposal
of appliances and industrial process refrigeration.'' Congress may have
added ``installation'' at the end of the sequence because it was an
addition to the terms that were included in section 608. Accordingly,
EPA does not agree that either the interpretation of the statutory term
``installation'' or the definition of the term in the implementation of
the statutory text through the regulations should be as limited as
commenters suggest.
EPA disagrees with the comment that EPA define ``servicing'' in
this final rule. EPA did not propose to do so, in part because it
expected that the term would be understood by the regulated community
without a definition, based in part on its experience with the
regulations under CAA section 608, which addresses servicing of
appliances without defining the term, and to EPA's knowledge, that lack
of a definition has not hindered implementation of those regulations.
EPA interprets installation and servicing to have distinct meanings
under subsection (h)(1), as each is listed separately. However, EPA
understands that adding refrigerant to existing equipment may also be
part of servicing that equipment and does not intend for the inclusion
of charging equipment in the regulatory definition of installation to
suggest that adding refrigerant to equipment would only occur during
installation, but simply that it may occur as part of installation.
While EPA is not establishing a definition of servicing in this rule,
it notes that other examples of servicing may include, but are not
limited to, activities that involve the opening of the refrigerant
loop, such as charging equipment, replacing component parts, or
checking for leaks.
EPA discusses its authority for the requirements finalized in this
rule regarding installation and servicing of equipment in greater
detail in the relevant sections below.
MVAC-like appliance. EPA proposed this term to mean ``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.''
EPA is modifying its proposed definition of ``MVAC-like appliance''
by deleting the first instance of the phrase ``or equipment'' and
changing the second instance of ``or equipment'' with ``or
appliances.'' EPA deleted the first instance of the phrase ``or
equipment'' from the definition because the use of the term
``equipment'' in this instance does not align with the definition of
``equipment'' as defined in this rulemaking. This deletion is intended
to clarify the intent of the definition, as the use of ``equipment'' in
this context of ``off-road vehicles or equipment'' could have been
confusing because it is not being used in the sense of how the term
``equipment'' is defined in these regulations. Regarding the second
instance of ``air conditioning equipment'' EPA changed this language to
``air conditioning appliances'' to better align the types of devices
that the definition of the term ``MVAC-like appliance'' covers under 40
CFR 82.152 with the types of devices covered under this rulemaking. EPA
also removed the word ``defined'' from the definition to maintain
consistency with the definition of ``motor vehicle air conditioners.''
EPA still intends the definition to have the same meaning as in 40 CFR
82.152.
Recover. EPA proposed this term to mean ``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.''
EPA is modifying its definition of ``recover'' by putting the
number ``(1)'' before the phrase: ``removed, in any condition, from
equipment and'' and the number ``(2)'' before the phrase ``stored in an
external container, with or without testing or processing the regulated
substance or substitute for a regulated substance.'' EPA made this edit
to clarify the text and to more closely align its definition of
``recover'' with the corresponding definition in the Act, though the
AIM Act separates these two phrases with the letters ``(A)'' and
``(B)'' instead of ``(1)'' and ``(2).''
The term ``recover'' is defined in the AIM Act at subsection
(b)(10) as ``the process by which a regulated substance is (A) removed,
in any condition, from equipment; and (B) stored in an external
container, with or without testing or processing the regulated
substance.'' EPA proposed to extend the regulatory definition in these
regulations to include ``where applicable, substitutes for regulated
substances'' 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 a 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).
Comment: One commenter stated that the term ``recover'' is
insufficiently defined under the AIM Act and indicated that this could
lead to a loophole where virgin HFCs are placed into equipment for only
a short amount of time and then labeled as recovered. Another commenter
stated that EPA should consider recovered refrigerant as refrigerant
``installed in equipment for the purpose of operating the equipment for
an extended amount of time.''
Response: EPA responds that, as noted above, subsection (b)(10) of
the AIM Act defines ``recover'' as ``the process by which a regulated
substance is (A) removed, in any condition, from equipment; and (B)
stored in an external container, with or without testing or processing
the regulated substance.'' This definition is similar to the same term
as defined in 40 CFR 82.152, which defines ``recover'' to mean ``to
remove refrigerant in any condition from an appliance and to store it
in an external container without necessarily testing or processing it
in any way.'' While charging a regulated substance into a piece of
equipment and then recovering it without allowing it to be used for its
intended purpose could be

[[Page 82702]]

a loophole, EPA has not encountered confusion around this term under
the CAA regulations at 40 CFR 82.152, and the commenters did not
provide sufficient rationale to change this aspect of the statutorily
defined term in this regulation.
The Agency however takes note of the scenario the commenter
provided as a potential means for circumventing the requirements and
views such an approach as inconsistent with the intent of the
definition. Moreover, EPA is establishing a definition of ``virgin
regulated substance'' in this rulemaking to make it clear that
introduction of a regulated substance to equipment, such as a
refrigerant-containing appliance or fire suppression equipment, solely
or primarily to convert or attempt to convert its status to a ``used''
regulated substance and circumvent the intended requirements of this
rule is not permissible. A regulated substance that has had no bona
fide use in equipment (as described in the definition for ``virgin
regulated substance'') would still be considered a virgin regulated
substance.
Refrigerant. EPA proposed this term to mean, ``for purposes of this
subpart, 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.''
After considering comments, EPA is modifying the final definition
by replacing the phrase ``including those that provide a cooling
effect'' with the phrase ``and provides a cooling effect.'' This change
aligns with the definition of ``refrigerant'' in 40 CFR 82.152 and will
maintain a consistent understanding of the term in the ER&R program and
in the regulations under section 608 of the CAA. EPA is also removing
the phrase ``for the purposes of this subpart'' from this definition
for reasons stated in section IV.A.1 of this preamble.
Comment: One commenter asked whether heat transfer fluids that do
not provide a cooling effect are regulated under this rule. The
commenter stated that EPA's proposed definition could include heat
transfer fluids that do not provide a cooling effect, including
fluorinated heat transfer fluids (F-HTFs). The commenter indicated that
this was likely not EPA's intention, citing EPA's rulemaking 69 FR at
11946, 11957 (March 12, 2004), which excluded heat transfer fluids that
do not provide a cooling effect. The commenter further stated that F-
HTFs have never been used as a substitute for ODS, unlike regulated
substances that provide a cooling effect. The commenter provided the
following alternative definition: ``Refrigerant, for purposes of this
subpart, means any gaseous substance, including blends and mixtures,
consisting in part of or whole of a regulated substance or a substitute
for a regulated substance that is used in a heat cycle, and reversibly
undergoes a phase change from a gas to a liquid, to provide a cooling
effect.''
Response: EPA acknowledges the commenter's suggestion for an
alternative definition for the term refrigerant and in response agrees
with the commenter that F-HTFs that do not circulate through the
compressor of a system are not considered refrigerants for the purposes
of this rule. EPA has historically treated these fluids separately from
refrigerants. However, EPA notes that subsection (h)(1) of the AIM Act
is not limited to refrigerants but rather ``equipment . . . that
involves a regulated substance, or a substitute for a regulated
substance.'' This rule includes HFCs used as fire suppression agents in
fire suppression equipment and in a later rulemaking action could
include HFCs used as heat transfer fluids. Furthermore, the commenter's
alternative definition only covers vapor compression systems and not
alternative types of refrigeration systems such as non-mechanical heat-
transfer with a circulating cooler or a thermosiphon, which EPA has
included as an end-use under SNAP. For those reasons, rather than
adopting the commenters' suggested definition, EPA is modifying the
proposed definition as described above to clarify that heat transfer
fluids that do not provide a cooling effect are not included in the
definition of ``refrigerant'' established in this rule.
Refrigerant-containing appliance. EPA proposed this term to mean
``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.''
After considering comments, EPA is modifying the final definition.
First, EPA is removing the phrase ``motor vehicle air conditioner'' and
replacing it with its abbreviation ``MVAC'' to maintain consistency
with other definitions where the term ``motor vehicle air
conditioner(s)'' is abbreviated. After the term ``MVAC,'' EPA is also
adding the word ``MVAC-like appliance'' to provide another example of a
refrigerant-containing appliance. Second, EPA is replacing the phrase
``a system with multiple circuits'' to ``such devices with multiple
circuits.'' This edit is intended to increase clarity, as the term
``device'' is used in the last sentence to maintain a parallel sentence
structure with the first sentence of the definition, which uses the
term ``any device.'' The final definition also adds ``including but not
limited to,'' to clarify that air conditioners, refrigerators,
chillers, and freezers are intended as illustrative examples, but is
not an exhaustive list of all possible devices that meet the definition
of refrigerant-containing appliances under this subpart. EPA further
notes that a refrigerant-containing appliance could be of any size and
include residential, commercial, or industrial appliances.
As the term ``refrigerant-containing appliance'' is not a defined
term under the AIM Act, and as the Agency is establishing certain
regulatory requirements that apply only to refrigerant-containing
appliances in this rule, the regulatory definition is designed to
provide clarity as to what types of equipment are subject to those
requirements. EPA intends this term to be a subset of the broader
category of ``refrigerant-containing equipment'' which is also defined
in this rule as discussed below, and EPA understands that any
exclusions from the definition of ``refrigerant-containing equipment''
would necessarily also apply to refrigerant-containing appliances. EPA
notes that this definition differs from the definition of a similar
term, ``appliance,'' under CAA section 608. CAA sections 601 and 608
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;
rather subsection (h) focuses more broadly on ``equipment.''
Accordingly, EPA is not including that phrase in defining
``refrigerant-containing appliance'' for purposes of implementing
subsection (h). Similar to EPA's approach to similar equipment under
the application of title VI of the CAA (e.g., under sections CAA
sections 608 and 612), EPA is defining a ``refrigerant-containing
appliance'' to consist of an independent circuit. The independent
circuit provides the desired cooling effect, typically consisting of a
compressor, condenser, evaporator, and metering device in an enclosed
refrigerant loop. EPA notes that a given piece refrigerant-containing
equipment could contain multiple independent circuits and thus be
considered as multiple, separate ``refrigerant-containing appliances.''
For

[[Page 82703]]

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.
Comment: One commenter recommended that EPA define each independent
closed loop circuit as a separate appliance, citing confusion caused by
different usage of the term ``appliance'' by the industry.
Response: EPA agrees that each independent closed loop circuit is a
separate appliance and has clarified the final definition, as described
above.
Refrigerant-containing equipment. EPA proposed this term to mean
``equipment 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 modifying the final definition by replacing the phrase
``mission-critical military end uses and systems'' with ``military
equipment.'' EPA also added the word ``to'' after the word
``connected'' to maintain consistency with other definitions that use
the phrase ``connected to.'' Finally, EPA is removing the phrase
``MVAC-like appliances'' from the definition because ``MVAC-like
appliances'' are examples of refrigeration-containing appliances. As
such, keeping the term in the definition would be extraneous.
As finalized, this definition of ``refrigerant-containing
equipment'' does not include military equipment used in deployable and
expeditionary applications, nor does it include space vehicles. These
exclusions are based on EPA's understanding that there are situations
in which the unique design and use of military equipment 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 requirements and other provisions for refrigerant-
containing equipment in this rulemaking in an active military zone of
engagement, including military systems used in deployable and
expeditionary situations, could lessen the military effectiveness of
the equipment. Similarly, the exclusion for space vehicles is based on
EPA's understanding that requiring leak repair and other provisions in
this rulemaking for such equipment could lessen their effectiveness.
EPA notes that an identical exclusion for military equipment and space
vehicles was made in the finalized definition of ``fire suppression
equipment.'' Further, as noted in section I.B and-explained in greater
detail in the discussion of the definition for ``fire suppression
equipment'' above, while EPA replaced the phrase ``mission-critical
military end uses and systems'' with ``military equipment'' in this
definition, this final rule also includes a separate exemption from the
ER&R regulations for mission-critical military end uses (as listed at
40 CFR 84.13(a)), for a year or years for which the application
receives an application-specific allowance as defined at 40 CFR 84.3.
Comment: One commenter stated that the proposed rule creates
confusion by having separate definitions for equipment, refrigerant-
containing appliance, and refrigerant-containing equipment. The
commenter stated that EPA's definition of ``refrigerant-containing
appliance'' would have been sufficient for all the instances in which
``equipment'' or ``refrigerant-containing equipment'' were used, and
that EPA should only finalize a definition for ``refrigerant-containing
appliance,'' and rename it ``refrigerant-containing equipment'' to be
consistent with subsection (h) of the AIM Act.
Response: EPA disagrees with this comment, as the terms
``equipment,'' ``refrigerant-containing equipment,'' and ``refrigerant-
containing appliance'' are not used interchangeably in the rule.
Rather, these three definitions are intended to have distinct meanings.
For example, ``refrigerant-containing equipment'' is a broader category
that includes applications that are not covered under ``refrigerant-
containing appliance.'' For example, ``refrigerant-containing
equipment'' includes refrigerant-containing components, whereas the
definition of ``refrigerant-containing appliance'' does not.
``Equipment'' is an even broader category that includes both equipment
that does and equipment that does not contain refrigerant. For example,
fire suppression equipment is included in the definition of equipment
but not the definition of ``refrigerant-containing equipment.''
Different requirements apply to different types of equipment under the
regulations established in this final rule. Given these distinctions,
EPA is retaining all three of these definitions in the final rule.
Repair. EPA proposed this term to mean, ``for purposes of this
subpart and as it relates to a particular leak in a refrigerant-
containing appliance, to mean making adjustments or other alterations
to that refrigerant-containing appliance that have the effect of
stopping leakage of refrigerant from that particular leak.''
EPA is modifying this term by removing the phrase ``for the
purposes of this subpart'' from this definition for reasons stated in
section IV.A.1 of this preamble.
Comment: One commenter expressed support for EPA's proposed
definition of repair and the discussion of the purpose of repair in the
preamble of the proposed rule.
Response: After considering comments, EPA is finalizing the
definition of ``repair'' as proposed, though EPA is deleting the phrase
``for purposes of this subpart'' from the definition.
Retrofit. EPA proposed this definition, as it relates to a
refrigerant-containing appliance, to mean ``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-GWP.''
EPA is modifying the final definition by removing the last sentence
requiring that retrofits be done with a refrigerant with a lower-GWP.
The proposed definition was meant to prevent the retrofit of
refrigerant-containing appliances to a higher-GWP refrigerant as a
compliance option. EPA decided in this final rule to not require the
retrofit of an appliance to a lower-GWP refrigerant. The Agency
acknowledges that there are situations where retrofitting to a lower-
GWP refrigerant may not be feasible, such as when there is an
inadequate supply of lower-GWP refrigerant or when technical standards
do not allow the retrofit from a non-flammable refrigerant to a
flammable refrigerant. Some appliances may have a limited number of
lower-GWP alternatives, making it more difficult to retrofit a system
to meet leak repair requirements. While the owner of a refrigerant-
containing appliance has other ways to meet leak repair requirements,
such as sufficiently repairing leaks or retiring the system, EPA does
not want to limit the number of compliance options by prohibiting the
retrofit of an appliance to a higher-GWP refrigerant. EPA emphasizes
that it still encourages the retrofit of systems to

[[Page 82704]]

lower-GWP refrigerants whenever possible.
Comment: A few commenters were opposed to a requirement that
retrofits always be to a refrigerant with a lower-GWP. One commenter
stated that requiring retrofits to only lower-GWP refrigerants would
produce logistical challenges, create supply constraints, and increase
costs. Another commenter stated that EPA should avoid discouraging
retrofits from refrigerants like R-22, R-404A, and R-507A to lower-GWP
alternatives that still exceed the GWP limits in the 2023 Technology
Transitions Rule (R-448, R-449, R-427, R-407H, and R-407A for
commercial and industrial). The commenter stated that transitioning
from R-404A to lower-GWP options will benefit the HFC phasedown. One
commenter supported EPA retaining its definition to require retrofits
to low-GWP refrigerants and stated that requiring retrofit plans to use
lower-GWP refrigerants is consistent with the phasedown and the intent
of the AIM Act and may help mitigate ongoing leakage that may occur
after the retrofit is completed.
Response: EPA acknowledges these comments both supporting and
opposing the proposed definition. After consideration of these
comments, for the reasons discussed above in describing the
modifications to the proposed definition in the final definition, EPA
is not requiring that retrofits use lower-GWP refrigerants in this
final rule. As noted above, while not requiring it, EPA encourages the
retrofit of refrigerant-containing appliances to lower-GWP refrigerants
whenever possible. With respect to the comments related to the
restrictions established in the 2023 Technology Transitions Rule, EPA
notes that rule did not address retrofits and that rule applies only to
new systems (including for refrigerant-containing appliances).
Additionally, with respect to the comment that requiring retrofits to
lower-GWP refrigerants may help mitigate ongoing leakage after the
retrofit is complete, EPA notes that 40 CFR 84.106(h)(4) requires that
all leaks be repaired as part of any retrofit plan, which should also
ameliorate concerns about ongoing leakage related to the retrofit.
Regarding the intent of the Act, the commenter did not provide any
rationale to support the position that the intent of the AIM Act was to
require retrofits to use lower-GWP refrigerants. EPA further notes that
the AIM Act does not expressly address whether a lower-GWP refrigerant
should be used for retrofits, and for the reasons explained above, EPA
has decided not to establish that requirement in this rule.
Substitute for a regulated substance. EPA is finalizing this
definition as proposed to mean ``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.''
Subsection (h)(1) expressly authorized EPA to promulgate certain
regulations involving 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. EPA is defining ``substitute for a
regulated substance'' in this subpart for additional clarity that the
use of this term in subsection (h) and in the regulations established
in this rule differs from how the term ``substitute'' is used in
subsection (i) and defined in 40 CFR part 84, subpart B.\48\ The
definition under subsection (h) makes clear that substitutes do not
include HFCs or ODS and are instead a different category of substances.
Examples of a substitute for a regulated substance that are encompassed
by this definition under subsection (h) 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. However, a blend that
contains a regulated substance is subject to the requirements that
apply under this rule to regulated substances because those
requirements apply to regulated substances regardless of whether the
regulated substance is used neat or in a blend, as described above in
section II.B of this preamble.
---------------------------------------------------------------------------

\48\ The definition for substitute in the 2023 Technology
Transitions Rule is: ``any substance, blend, or alternative
manufacturing process, whether existing or new, that may be used, or
is intended for use, in a sector or subsector with a restriction on
the use of regulated substances and that has a lower global warming
potential than the GWP limit or restricted list of regulated
substances and blends in that sector or subsector.'' Under this
definition, substitutes include regulated substances (e.g., HFC-32
used in lieu of R-410A in commercial unitary AC), blends containing
regulated substances (e.g., R-454B used in lieu of R-410A in
residential unitary AC), blends that do not use a regulated
substance (e.g., R-441A used in lieu of R-410A in window ACs),
substances that are not HFCs (e.g., HFOs, hydrocarbons, R-717, and
R-744 (CO<INF>2</INF>)), and not-in-kind technologies (e.g., finger-
pump bottles in lieu of aerosol cans, or vacuum panels in lieu of
foam insulation). (See 88 FR 73098, 73110, October 24, 2023).
---------------------------------------------------------------------------

This distinction between substitutes and regulated substances for
purposes of these regulations is also helpful for implementing certain
provisions of this rulemaking that apply differently to regulated
substances than to substitutes for regulated substances. For instance,
the leak repair requirements apply to all regulated substances but only
apply to substitutes for a regulated substance with a GWP greater than
53.
As noted in the Executive Summary of this preamble at section I.A,
the terms ``HFC'' and ``regulated substance'' are used interchangeably
in this preamble. Similarly, the term ``substitute for an HFC'' may be
used interchangeably with ``substitute for a regulated substance'' in
this preamble.
Comment: One commenter requested further clarification of the
definition. The commenter stated that the definition of ``regulated
substance'' in 40 CFR 84.106(a)(1) is easy to understand unlike the
definition in 40 CFR 84.106(a)(2). The commenter highlighted the
complexity of determining the GWP of a substitute for a regulated
substance, because the proposed methodology involved consulting three
separate references that may vary in accessibility. The commenter
requested that EPA provide a list of all substitutes for regulated
substances with a GWP greater than 53, and that the Agency should not
list substitutes for regulated substances with a GWP of less than 53,
as doing so contributes to confusion.
Response: EPA responds that to the extent the commenter read the
proposed regulations at 40 CFR 84.106(a)(1) and (2) as definitions,
that interpretation misunderstands the intent of those provisions,
which are designed to describe the applicability of the requirements in
40 CFR 84.106, not provide general definitions. To the extent the
commenter intended to request the addition of definitions, EPA responds
that subsection (c)(1) of the AIM Act lists regulated substances for
the purpose of this and other rulemakings under the AIM Act, such as
the Allocation Framework Rule (86 FR 55116, October 5, 2021) and the
2023 Technology Transitions Rule (88 FR 73098, October 24, 2023). The
term ``regulated substance'' is defined in part 84, subpart A (40 CFR
84.3), with a current list provided in appendix A to part 84, and this
appendix applies to the whole of part 84, including subpart C.
Accordingly, EPA concludes it is not necessary to again list the
regulated substances with a GWP greater than 53 in this action. While
subsection (c)(3)(A) of the AIM Act authorizes the Administrator to
designate as a regulated substance a substance that is not included in
the list in subsection (c)(1) if certain criteria are met, EPA did

[[Page 82705]]

not propose to add any regulated substance to the statutory list, and
is not finalizing any addition. To the extent the commenter opposes
such a listing, EPA finds that concern is beyond the scope of this
rulemaking and thus requires no further response.
In response to the commenter's statements about the complexity of
consulting multiple sources to determine the GWP of a substitute for a
regulated substance, EPA notes that as described in section IV.C.1 of
this preamble, the Agency is not finalizing the methodology to
determine GWP of a substitute for a regulated substance, as proposed.
EPA is instead finalizing the provisions to use a list of GWPs for
various substitutes for regulated substances codified in the 2023
Technology Transitions Rule at 40 CFR 84.64. EPA is taking this
approach because it agrees that having these GWPs in one concise list
will limit confusion and enhance accessibility.
Virgin regulated substance. EPA proposed this definition to mean
``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 modifying the final definition by removing the phrase
``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's proposed definition of ``virgin regulated substance''
excluded refrigerant heels because EPA wanted to include refrigerant
heels recovered from a container as recovered material for purposes of
meeting the reclamation standard. However, EPA concluded that
refrigerant heels are best described as ``virgin regulated substances''
because refrigerant heels have not had a bona fide use in equipment.
EPA still recognizes the value of recovered heels, and thus EPA is not
counting refrigerant heels that are removed from containers to
contribute towards the 15 percent virgin material limit discussed in
section IV.E.1 of this preamble.
The final definition of ``virgin regulated substance'' makes it
clear that the introduction of a regulated substance to equipment, such
as a refrigerant-containing appliance or fire suppression equipment,
solely to convert its status to a ``used'' regulated substance and
circumvent the intended requirements of this rulemaking is not
permissible. This scenario, where a regulated substance is charged into
equipment and subsequently recovered without any bona fide use, was
brought to EPA's attention by stakeholders including during public
stakeholder meetings as the Agency developed this rulemaking.\49\ This
issue was also raised in public comments on the proposed rule, as
indicated in the comments summarized immediately below. Under the
definition finalized in this rule, a regulated substance that has had
no bona fide use in equipment would be considered a virgin regulated
substance.
---------------------------------------------------------------------------

\49\ EPA held stakeholder meetings for public input on November
9, 2022, and March 16, 2023, and also solicited feedback through a
webinar for EPA's GreenChill Partnership program on April 12, 2023.
---------------------------------------------------------------------------

Comment: One commenter stated it is arbitrary and capricious to
limit the definition of ``virgin regulated substance'' to refrigerant
without a ``bona fide use'' in equipment because EPA does not define
``bona fide use'' and offers a limited explanation of the term. While
the commenter agreed that only refrigerant that was used in an
appliance for its intended purpose should qualify as recovered
refrigerant, the commenter stated that it is not clear who the
compliance obligation to make this determination of ``bona fide use''
falls on. The commenter further stated that the heel or residue of a
container should not by default be considered ``virgin'' on the basis
that it had a bona fide use, but instead be categorized based on the
nature of its origin.
Multiple commenters requested that EPA define ``bona fide use.''
One commenter stated that EPA should define a minimum length of time
that refrigerant can be in equipment or some other objective criteria
before it has had a ``bona fide use.'' Another commenter stated that
the term ``bona fide use'' has never been used in any definition of
reclaim or reclamation either under title VI of the CAA, the AIM Act,
or under the Air-Conditioning, Heating, and Refrigeration Institute's
(AHRI) 700 standard for reclamation, and that EPA provides no
justification for using the term. Two commenters stated that it is
unclear how EPA will determine whether refrigerant has had a ``bona
fide use.'' One commenter claimed that not having a precise definition
of ``bona fide use'' will undermine the refrigeration industry and lead
to fraud, since entities could briefly pass refrigerant through
chillers or other equipment and then remove it, process it, and send it
out for ``AHRI 700 certification.'' Lastly, one commenter stated that
it is necessary to specify the use conditions from which refrigerant
can be recovered in order to consider them reclaimed. The commenter
asserted this would help avoid the ``potential laundering of newly
produced material into the reclamation market.''
A few commenters recommended that EPA distinguish between virgin
refrigerant and recovered heel. One commenter requested that EPA define
heel as ``the residual amount of any regulated substance in a
disposable cylinder.'' The commenter stated that residual amounts of
regulated substances left in a disposable cylinder that has not had a
bona fide use in equipment should be considered a ``virgin regulated
substance'' whereas any residual amounts left in a disposable cylinder
that has had a bona fide use in servicing, repair, or installation
should be considered a recoverable substance for reclaim. The commenter
remarked that these definitions should only apply to disposable
cylinders and not other types of containers, as those heels are
properly accounted for as virgin gas. Another commenter suggested the
recovered heel should be considered in the context of cylinders rather
than containers to avoid gaming the system of recovering from larger
containers. Two commenters asserted that EPA should define heel based
on how the refrigerant was used or obtained, not on the type of
container the refrigerant is in. A commenter gave an example of
refrigerant left in an International Organization for Standardization
tank or rail car. The commenter stated that under EPA's proposed
definition of ``virgin regulated substance,'' all of the unused
refrigerant in these containers would need to be considered a ``heel''
and have to be reclaimed even though the refrigerant would still have
the properties of virgin refrigerant. Another commenter discussed the
possibility of large quantities of refrigerant being sent to a
reclaimer as ``bona fide heel'' and asked for clarification on whether
a bona fide heel could include the entire contents of a container. One
commenter requested that the words ``heel'' and ``residue'' both be
defined as ``the vapor contents remaining in a container once the last
drop of liquid has been removed.''
Response: EPA disagrees that limiting the definition of ``virgin
regulated substances'' to refrigerant that has not had a ``bona fide
use'' in equipment is arbitrary and capricious and, after considering
the comments on this topic, is finalizing a definition of ``virgin
regulated substance'' to mean ``any regulated substance that has not
had any bona fide use in equipment.'' Commenters did not provide
alternate definitions or approaches that would sufficiently address the
concerns raised by commenters and stakeholders that

[[Page 82706]]

entities could briefly pass refrigerant through equipment and claim the
refrigerant was recovered. After considering the public input on this
issue, the Agency concludes that it is important to finalize a
definition of ``virgin regulated substance'' that indicates that virgin
refrigerant is refrigerant that has not had bona fide use in equipment
to address these concerns and help ensure the integrity of the
reclamation requirements. In response to the comment on compliance
obligation, EPA notes there is no obligation to make a determination of
bona fide use under the definition itself; however, the definition
informs compliance with other regulatory obligations, and to determine
the compliance obligation one would need to examine the relevant
regulatory requirement.
While EPA is not finalizing a definition for ``bona fide use'' in
this rule, the Agency notes that at a minimum, refrigerant that has had
a ``bona fide use'' is refrigerant that has been used in equipment to
transfer heat between materials and then recovered for the purposes of
reclamation or disposal. It is EPA's position that there is no set
amount of time that a refrigerant should be used in a system before it
is considered to have had a ``bona fide use.'' Since there are a
diverse range of applications in which refrigerants are used, and a
variety of circumstances around that use, it is not appropriate to
define a specific timeframe that applies for all refrigerants and
applications. However, the amount of time refrigerant is used and other
circumstances surrounding its use should together indicate that the use
was for purposes of the equipment's maintenance or operation, rather
than for the purpose of converting or attempting to convert the HFC's
status to a ``used'' regulated substance and circumvent the
requirements of this rule. Examples of ``bona fide use'' of refrigerant
in equipment include, but are not limited to, refrigerant recovered
from equipment once the refrigerant becomes contaminated, or
refrigerant removed from an appliance due to changes in ambient
conditions according to the provisions of seasonal variance in 40 CFR
82.152. Conversely, as indicated previously, passing a regulated
substance through equipment and then recovering without an operational
reason to do so (e.g., without an indication of contamination or
equipment malfunction), for the purpose of this treating the regulated
substance as used, would not be considered bona fide use under this
definition.''
Even assuming the comments that the term ``bona fide use'' has not
been used previously in other rulemakings or regulatory texts under CAA
title VI or the AIM Act is true, EPA does not believe that is a reason
to not use the term here. EPA's justification for using the term is to
differentiate ``virgin regulated substances'' from those substances
that have been used in equipment for their intended purposes and should
no longer be considered virgin refrigerant. Some commenters expressed
concern with the definition of recovery because there is the potential
that virgin regulated substances would be charged into equipment or
appliances and then recovered in an attempt to circumvent regulatory
requirements established under this rule. EPA responds that the Agency
considers the definition of ``virgin regulated substance'' for the
purposes of these regulations under subsection (h) to address those
concerns and reiterates that adding refrigerant to an appliance for the
purpose of recovering it shortly thereafter, and then considering it
``used'' is not considered ``bona fide use.''
EPA did not propose and is not establishing a definition for
residue or establishing various definitions for heel based on different
types of containers. While in the Economic Impact and Benefits TSD EPA
estimates an average refrigerant heel at a specific percent of a
container's nominal capacity, EPA acknowledges that there may be
variations in the amount of HFCs that remain in a container.
The definition of ``heel'' in 40 CFR 84.3 to mean ``the amount of a
regulated substance that remains in a container after it is discharged
or off-loaded (that is no more than 10 percent of the volume of the
container)'' applies to this rulemaking, as EPA is adopting definitions
from 40 CFR part 84, subpart A for terms that are not separately
defined in this rule. EPA clarifies that the heel could never be
considered to include more than 10 percent of the container. EPA is not
differentiating between refrigerant heels in different types of
containers in this rulemaking to maximize the reclamation of
refrigerant heel, except to clarify that the ten percent limit applies
regardless of the type of container.
In response to comments about whether refrigerant should be
classified by the nature of its origin, EPA notes that it is
distinguishing refrigerant by its prior use, not the type of container
it is in. As stated previously, refrigerant that has had bona fide use
in equipment would be considered recovered material, whereas
refrigerant that has not had a bona fide use in equipment would not be
considered recovered. In response to the comment suggesting that EPA
not specify that refrigerant heel or residue must include only vapor
contents in this rulemaking, EPA has decided not to include such a
specification, as the Agency understands that there may be situations
where refrigerant heel is not entirely vapor, even if the amount of
refrigerant heel remaining in the container is less than 10 percent of
the container's volume.
3. What additional comments did EPA receive on definitions?
Some commenters suggested that EPA create defined terms that the
Agency did not propose. Those terms are: reclaim, saturated
hydrofluorocarbon, regulated substance, substitute, essential use,
narrowed use limit, and technology transitions petition. For the
reasons discussed in this section, EPA is not establishing definitions
for these terms in this action.
Reclaim: Multiple commenters requested that EPA define ``reclaim''
or a phrase containing the word ``reclaim'' to improve the clarity of
the rule. One commenter claimed that reclaimed refrigerant referred to
in 40 CFR 84.112(e) may be refrigerant that either has ``not had bona
fide use in equipment'' or recovered refrigerant (removed from
equipment), and that these requirements are not interchangeable because
recovered material could be virgin. The commenter asserted that EPA
should clarify that reclaimed refrigerant must be non-virgin in origin.
Another commenter suggested that EPA could consider instituting a
policy in which the amount of material that can be sold by an entity as
reclaimed cannot exceed material recovered. Another commenter suggested
that EPA should define ``certified reclaimed refrigerant'' as ``used
(recovered) refrigerant . . . from a previously operational appliance''
in line with the California Air Resources Board (CARB) definition.
Response: Subsection (b)(9) of the AIM Act provides a statutory
definition for ``reclaim; reclamation.'' This definition refers to the
reprocessing of a recovered regulated substance to meet at least the
purity described in standard AHRI 700-2016 (or an appropriate successor
standard adopted by the Administrator), and that the purity of the
reclaimed regulated substances must be verified using, at a minimum,
the analytical method described in that standard. EPA promulgated a
definition

[[Page 82707]]

for ``reclaim'' in the Allocation Framework Rule (86 FR 55116, October
5, 2021) that is consistent with the definition provided by the AIM Act
and that appears in 40 CFR 84.3. As provided in the regulations
established in the final rule, for terms not defined in subpart C but
that are defined in section 84.3, the definitions in section 84.3 shall
apply, because the definition in 84.3 is also appropriate for the rule.
EPA is not establishing a separate or different definition of
``reclaim'' in this action. This approach has the further benefit of
providing consistency in the use of this term in this action with how
it is used in other regulations implementing the AIM Act. Regarding the
suggested definition of ``certified reclaimed refrigerant,'' EPA notes
that CARB's definition of that term includes practices meant to ensure
that reclaimed refrigerant meets certain standards (such as being from
a previously operational appliance).\50\ EPA is not finalizing a
definition of ``certified reclaimed refrigerant,'' nor is EPA providing
a definition specifying what standards reclaimed refrigerants have to
meet beyond what is already required under the AIM Act. In provisions
that appear outside of the definition section of the regulations
established in this final rule, EPA is requiring that refrigerant
contain no more than 15 percent virgin material as specified in the
reclamation standard found in 40 CFR 84.112(a) and that reclaimed
refrigerant must meet AHRI standards or other applicable purity
specifications. Because these provisions address the standards that
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