Notice2024-23138
Phasedown of Hydrofluorocarbons: Notice of Final Administrative Consequences Under the American Innovation and Manufacturing Act Affecting 2024 Allowances
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 7, 2024
Issuing agencies
Environmental Protection Agency
Abstract
The Environmental Protection Agency (EPA) is providing notice of Agency actions previously taken to establish administrative consequences for specific entities. These previously finalized actions withheld, retired, or revoked the identified entities' calendar year 2024 allowances in accordance with the administrative consequence regulatory provisions.
Full Text
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<title>Federal Register, Volume 89 Issue 194 (Monday, October 7, 2024)</title>
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[Federal Register Volume 89, Number 194 (Monday, October 7, 2024)]
[Notices]
[Pages 81079-81082]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-23138]
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ENVIRONMENTAL PROTECTION AGENCY
[EPA-HQ-OAR-2021-0669; FRL-9116-05-OAR]
Phasedown of Hydrofluorocarbons: Notice of Final Administrative
Consequences Under the American Innovation and Manufacturing Act
Affecting 2024 Allowances
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice.
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SUMMARY: The Environmental Protection Agency (EPA) is providing notice
of Agency actions previously taken to establish administrative
consequences for specific entities. These previously finalized actions
withheld, retired, or revoked the identified entities' calendar year
2024 allowances in accordance with the administrative consequence
regulatory provisions.
FOR FURTHER INFORMATION CONTACT: Connor Henderson, U.S. Environmental
Protection Agency, Stratospheric Protection Division, telephone number:
202-564-2177; email address: <a href="/cdn-cgi/l/email-protection#bad2dfd4dedfc8c9d5d494d9d5d4d4d5c8fadfcadb94ddd5cc"><span class="__cf_email__" data-cfemail="39515c575d5c4b4a5657175a565757564b795c4958175e564f">[email protected]</span></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.
SUPPLEMENTARY INFORMATION: The Environmental Protection Agency (EPA)
hereby provides notice that it has taken final actions establishing
administrative consequences for specific entities under the American
Innovation and Manufacturing Act (AIM Act). Each action, which EPA took
through a letter issued to the relevant entity, is a separate final
action informing the recipient entity of an administrative consequence.
The requirements pertaining to administrative consequences are codified
in 40 CFR 84.35. Under this provision, EPA can retire, revoke, or
withhold the allocation of allowances, or ban an entity from receiving,
transferring, or conferring allowances. A retired allowance is one that
must go unused and expire at the end of the year; a revoked allowance
is one that EPA takes back from an allowance holder and redistributes
to all the other allowance holders; and a withheld allowance is one
that is retained by the Agency until an allowance holder that has
failed to meet a regulatory requirement comes back into compliance, at
which point EPA allocates it to the allowance holder. A withheld
allowance could become a revoked allowance if the allowance
[[Page 81080]]
holder fails to meet the applicable regulatory requirement within the
timeframe specified by EPA.\1\ More information on EPA's approach to
administrative consequences can be found at 86 FR 55168 (Allocation
Framework Rule).
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\1\ Administrative consequences that the Agency has finalized
can be found here: <a href="https://www.epa.gov/climate-hfcs-reduction/administrative-consequences-under-hfc-allocation-rule">https://www.epa.gov/climate-hfcs-reduction/administrative-consequences-under-hfc-allocation-rule</a>.
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EPA finalized administrative consequences for three entities that
imported regulated HFCs without expending the requisite number of
consumption allowances at the time of import. The Agency has retired
and revoked consumption allowances commensurate with the quantities of
regulated substances imported without allowances from the following
entities' remaining calendar year 2024 consumption allowances:
ChemPenn, LLC (ChemPenn); Tulstar Products (Tulstar); and, USSC
Acquisition Corp (USSC). EPA also finalized administrative consequences
for one entity (Firetrace) who failed to submit complete HFC reports as
required in 40 CFR 84.31. This entity failed to submit complete HFC
reports as required, and therefore, EPA withheld 20 percent of
Firetrace's calendar year 2024 consumption allowances from any granted
requests for additional consumption allowances (RACAs) until the
outstanding reports were submitted, and EPA verified them as complete.
Table 1 provides a summary of each of the administrative consequences
applied to the relevant entities.
Table 1--Summary of Administrative Consequences Affecting Consumption Allowances, Pursuant to
40 CFR 84.35
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Number of affected Applicable Administrative
Entity (effective date) allowances (MTEVe) year consequence action Reasoning
----------------------------------------------------------------------------------------------------------------
ChemPenn (06/06/24)............ 32.5.............. 2024 Retire............ Imported regulated HFCs
16.3 \a\.......... 2024 Revoke............ without expending
requisite number of
allowances.
Tulstar Products (03/31/24).... 31,006.5.......... 2024 Retire............ Imported regulated HFCs
15,503.3 \a\...... 2024 Revoke............ without expending
requisite number of
allowances.
USSC Acquisition Corp (03/31/ 2.3............... 2024 Retire............ Imported regulated HFCs
24). 1.2 \a\........... 2024 Revoke............ without expending
requisite number of
allowances.
Firetrace (02/26/24)........... 20 percent of 2024 Withhold \b\...... Failure to submit
granted RACAs. complete HFC reports
as required in 40 CFR
84.31.
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\a\ As stated in the Allocation Framework Rule, EPA explained it would take a 50% premium in first instances of
administrative consequences. These values correspond to 50% of the full amount of consumption without
requisite allowances at the time of production and/or import.
\b\ Subsequent to finalization of the administrative consequence, Firetrace submitted its outstanding reports.
Subsequently, EPA is no longer withholding 20% of granted RACAs.
Adjustments to Consumption Allowances
EPA notes that entities in Table 1 who imported without expending
the requisite number of consumption allowances at the time of import
are not eligible to receive allowances that are redistributed (to
entities that were directly issued calendar year 2024 consumption
allowances by EPA) as a result of allowances revoked if the
administrative consequence action took effect on the same day, with the
exception of entities who had their allowance withheld (regardless of
effective date).\2\ There are two separate batches of effective dates
for redistribution of revoked consumption allowances: allowances that
were revoked effective March 31, 2024 (15,504.5 MTEVe, i.e., the sum of
15,503.3 MTEVe and 1.2 MTEVe); and, allowances that were revoked
effective June 6, 2024 (16.3 MTEVe). In the former, neither Tulstar nor
USSC are eligible for redistribution of the affected allowances but
ChemPenn is eligible, as are all other entities to whom EPA issued
consumption allowances for calendar year 2024; in the latter, ChemPenn
is not eligible for redistribution of the affected allowances but
Tulstar and USSC are eligible, as are all other entities to whom EPA
issued consumption allowances for calendar year 2024. As EPA did not
issue consumption allowances to Firetrace for calendar year 2024, this
entity is not eligible to receive any of the redistributed allowances
described herein. A summary of the number of revoked and redistributed
allowances available to each eligible entity from each batch of
effective dates is included in table 2 and table 3.
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\2\ An identical approach was taken in ``Phasedown of
Hydrofluorocarbons: Notice of 2024 Allowance Allocations for
Production and Consumption of Regulated Substances Under the
American Innovation and Manufacturing Act of 2020, and Notice of
Final Administrative Consequences'' (88 FR 72060).
Table 2--Number of Consumption Allowances Available to Eligible Entities
Due to Finalized Administrative Consequences With an Effective Date of
March 31, 2024
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Additional
allowances
being
Entity allocated to
each entity
(MTEVe)
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A.C.S. Reclamation & Recovery (Absolute Chiller 11.4
Services)..............................................
Ability Refrigerants.................................... 11.4
ACT Commodities......................................... 0.0
Advance Auto Parts...................................... 40.8
Advanced Specialty Gases................................ 16.3
AFK & Co................................................ 11.1
AFS Cooling............................................. 11.4
A-Gas................................................... 194.8
Air Liquide USA......................................... 28.5
American Air Components \a\............................. 11.4
Arkema.................................................. 1,775.3
Artsen.................................................. 58.7
Automart Distributors DBA Refrigerant Plus.............. 11.4
AutoZone Parts.......................................... 115.5
AW Product Sales & Marketing............................ 6.9
Bluon \a\............................................... 1.9
CC Packaging............................................ 11.1
Chemours................................................ 1,957.9
Chemp Technology........................................ 11.4
ChemPenn................................................ 1.3
ComStar International................................... 20.6
[[Page 81081]]
Creative Solution....................................... 11.4
Cross World Group....................................... 11.4
Daikin America.......................................... 178.3
EDX Industry............................................ 32.8
Electronic Fluorocarbons................................ 6.0
Fireside Holdings DBA American Refrigerants............. 11.4
First Continental International......................... 44.0
FluoroFusion Specialty Chemicals........................ 145.8
Freskoa USA............................................. 11.4
GlaxoSmithKline......................................... 30.8
Golden Refrigerant...................................... 11.4
Harp USA................................................ 43.7
Honeywell International................................. 4,704.3
Hudson Technologies..................................... 194.9
Hungry Bear............................................. 11.4
ICool USA............................................... 194.6
IGas Holdings........................................... 1,491.5
Iofina Chemical......................................... 0.1
Kidde-Fenwal............................................ 11.4
Lenz Sales & Distribution............................... 63.4
Lina Trade.............................................. 11.4
Linde................................................... 30.4
Matheson Tri-Gas........................................ 2.0
MEK Chemical Corporation................................ 4.8
Meraki Group............................................ 11.4
Metalcraft.............................................. 9.2
Mexichem Fluor DBA Koura................................ 1,455.6
Mondy Global............................................ 18.2
National Refrigerants................................... 1,131.5
Nature Gas Import and Export............................ 46.8
North American Refrigerants............................. 11.4
O23 Energy Plus......................................... 11.4
Perfect Score Too DBA Perfect Cycle..................... 2.2
Reclamation Technologies................................ 34.1
Resonac America (formerly Showa Chemicals of America) 3.8
\a\....................................................
RGAS (formerly listed as Combs Gas)..................... 261.4
RMS of Georgia.......................................... 94.2
Sciarra Labratories..................................... 0.5
SDS Refrigerant Services................................ 11.4
Solvay Fluorides........................................ 63.0
Summit Refrigerants..................................... 11.4
SynAgile Corporation.................................... 0.1
Technical Chemical...................................... 195.1
TradeQuim............................................... 11.4
Transocean Offshore Deepwater Drilling.................. 0.0
Tulstar Products........................................ ineligible
Tyco Fire Products...................................... 11.4
USSC Acquisition Corp................................... ineligible
Walmart................................................. 130.3
Waysmos USA............................................. 32.0
Wego Chemical Group..................................... 3.2
Weitron................................................. 362.1
Wesco HMB............................................... 11.4
Wilhelmsen Ships Service................................ 2.3
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Total............................................... 15,504.5
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\a\ As described in ``Phasedown of Hydrofluorocarbons: Notice of 2024
Allowance Allocations for Production and Consumption of Regulated
Substances Under the American Innovation and Manufacturing Act of
2020, and Notice of Final Administrative Consequences'' (88 FR 72060),
EPA will retire (and revoke) allowances from these entities until
their full administrative consequences are covered. As a result, the
allowances allocated to this entity were subsequently retired.
Table 3--Number of Consumption Allowances Available to Eligible Entities
Due to Finalized Administrative Consequences With an Effective Date of
June 6, 2024
------------------------------------------------------------------------
Additional
allowances
being
Entity allocated to
each entity
(MTEVe)
------------------------------------------------------------------------
A.C.S. Reclamation & Recovery (Absolute Chiller 0.0
Services)..............................................
Ability Refrigerants.................................... 0.0
ACT Commodities......................................... 0.0
Advance Auto Parts...................................... 0.1
Advanced Specialty Gases................................ 0.0
AFK & Co................................................ 0.0
AFS Cooling............................................. 0.0
A-Gas................................................... 0.2
Air Liquide USA......................................... 0.0
American Air Components \a\............................. 0.0
Arkema.................................................. 1.9
Artsen.................................................. 0.1
Automart Distributors DBA Refrigerant Plus.............. 0.0
AutoZone Parts.......................................... 0.1
AW Product Sales & Marketing............................ 0.0
Bluon \a\............................................... 0.0
CC Packaging............................................ 0.0
Chemours................................................ 2.1
Chemp Technology........................................ 0.0
ChemPenn................................................ 0.0
ComStar International................................... 0.0
Creative Solution....................................... 0.0
Cross World Group....................................... 0.0
Daikin America.......................................... 0.2
EDX Industry............................................ 0.0
Electronic Fluorocarbons................................ 0.0
Fireside Holdings DBA American Refrigerants............. 0.0
First Continental International......................... 0.1
FluoroFusion Specialty Chemicals........................ 0.2
Freskoa USA............................................. 0.0
GlaxoSmithKline......................................... 0.0
Golden Refrigerant...................................... 0.0
Harp USA................................................ 0.1
Honeywell International................................. 4.9
Hudson Technologies..................................... 0.2
Hungry Bear............................................. 0.0
ICool USA............................................... 0.2
IGas Holdings........................................... 1.6
Iofina Chemical......................................... 0.0
Kidde-Fenwal............................................ 0.0
Lenz Sales & Distribution............................... 0.1
Lina Trade.............................................. 0.0
Linde................................................... 0.0
Matheson Tri-Gas........................................ 0.0
MEK Chemical Corporation................................ 0.0
Meraki Group............................................ 0.0
Metalcraft.............................................. 0.0
Mexichem Fluor DBA Koura................................ 1.5
Mondy Global............................................ 0.0
National Refrigerants................................... 1.2
Nature Gas Import and Export............................ 0.1
North American Refrigerants............................. 0.0
O23 Energy Plus......................................... 0.0
Perfect Score Too DBA Perfect Cycle..................... 0.0
Reclamation Technologies................................ 0.0
Resonac America (formerly Showa Chemicals of America) 0.0
\a\....................................................
RGAS (formerly listed as Combs Gas)..................... 0.3
RMS of Georgia.......................................... 0.1
Sciarra Labratories..................................... 0.0
SDS Refrigerant Services................................ 0.0
Solvay Fluorides........................................ 0.1
Summit Refrigerants..................................... 0.0
SynAgile Corporation.................................... 0.0
Technical Chemical...................................... 0.2
TradeQuim............................................... 0.0
Transocean Offshore Deepwater Drilling.................. 0.0
Tulstar Products........................................ 0.1
Tyco Fire Products...................................... 0.0
USSC Acquisition Corp................................... 0.0
Walmart................................................. 0.2
Waysmos USA............................................. 0.0
Wego Chemical Group..................................... 0.0
Weitron................................................. 0.4
Wesco HMB............................................... 0.0
Wilhelmsen Ships Service................................ 0.0
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[[Page 81082]]
Total............................................... 16.3
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\a\ As described in ``Phasedown of Hydrofluorocarbons: Notice of 2024
Allowance Allocations for Production and Consumption of Regulated
Substances Under the American Innovation and Manufacturing Act of
2020, and Notice of Final Administrative Consequences'' (88 FR 72060),
EPA will retire (and revoke) allowances from these entities until
their full administrative consequences are covered.
Judicial Review
The AIM Act provides that certain sections of the Clean Air Act
(CAA) ``shall apply to'' the AIM Act and actions ``promulgated by the
Administrator of [EPA] pursuant to [the AIM Act] as though [the AIM
Act] were expressly included in title VI of [the CAA].'' 42 U.S.C.
7675(k)(1)(C). Among the applicable sections of the CAA is section 307,
which includes provisions governing judicial review. 42 U.S.C.
7607(b)(1). Each adjudicatory action establishing an administrative
consequence as described in this notice is a final action previously
taken by EPA. Under section 307(b)(1) of the CAA, any petition for
review of such a final action shall be filed in the United States Court
of Appeals for the appropriate circuit by December 6, 2024. Filing a
petition for reconsideration by the Administrator does not affect the
finality of any such action for purposes of judicial review nor does it
extend the time within which a petition for judicial review may be
filed and shall not postpone the effectiveness of such action. The
final actions described herein may not be challenged later in
proceedings to enforce their requirements. 42 U.S.C. 7607(b)(2).
Cynthia A. Newberg,
Director, Stratospheric Protection Division.
[FR Doc. 2024-23138 Filed 10-4-24; 8:45 am]
BILLING CODE 6560-50-P
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