Notice2026-10534
Phasedown of Hydrofluorocarbons: Allocation of 2026 Production and Consumption Allowances Set Aside for Metered Dose Inhalers
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Published
May 27, 2026
Issuing agencies
Environmental Protection Agency
Abstract
The Environmental Protection Agency (EPA) is providing notice that the Agency allocated hydrofluorocarbon (HFC) set-aside allowances to general pool production and consumption allowance holders. For the calendar year 2026 allocation of HFC allowances, the EPA withheld a limited number of allowances from all general pool allowance holders. These allowances were set aside to accommodate unforeseen HFC needs for metered dose inhaler (MDI) end users. Entities that use HFCs as a propellant in MDIs had until April 30, 2026, to apply for these allowances, and the EPA received no applications. Accordingly, the EPA allocated all of the set-aside allowances pro rata amongst general pool allowance holders. This notice is announcing that allocation.
Full Text
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<title>Federal Register, Volume 91 Issue 101 (Wednesday, May 27, 2026)</title>
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[Federal Register Volume 91, Number 101 (Wednesday, May 27, 2026)]
[Notices]
[Pages 31450-31454]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-10534]
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ENVIRONMENTAL PROTECTION AGENCY
[EPA-HQ-OAR-2021-0669; FRL-9116-08-OAR]
Phasedown of Hydrofluorocarbons: Allocation of 2026 Production
and Consumption Allowances Set Aside for Metered Dose Inhalers
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice.
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SUMMARY: The Environmental Protection Agency (EPA) is providing notice
that the Agency allocated hydrofluorocarbon (HFC) set-aside allowances
to general pool production and consumption allowance holders. For the
calendar year 2026 allocation of HFC allowances, the EPA withheld a
limited number of allowances from all general pool allowance holders.
These allowances were set aside to accommodate unforeseen HFC needs for
metered dose inhaler (MDI) end users. Entities that use HFCs as a
propellant in MDIs had until April 30, 2026, to apply for these
allowances, and the EPA received no applications. Accordingly, the EPA
allocated all of the set-aside allowances pro rata amongst general pool
allowance holders. This notice is announcing that allocation.
FOR FURTHER INFORMATION CONTACT: Connor Henderson, U.S. Environmental
Protection Agency, Chemicals, Coatings, and Products Division, Office
of Clean Air Programs, U.S. Environmental Protection Agency, 1200
Pennsylvania Avenue NW, Washington, DC 20460; telephone number: 202-
564-2177; email address: <a href="/cdn-cgi/l/email-protection#dbb3beb5bfbea9a8b4b5f5b8b4b5b5b4a99bbeabbaf5bcb4ad"><span class="__cf_email__" data-cfemail="5d35383339382f2e3233733e323333322f1d382d3c733a322b">[email protected]</span></a>. You may also visit
the 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 EPA first established the regulations
for issuing allowances in the 2021 final rule titled Phasedown of
Hydrofluorocarbons: Establishing the Allowance Allocation and Trading
Program Under the American Innovation and Manufacturing Act \1\ and
updated previously established methodology in the final rule titled
Phasedown of Hydrofluorocarbons: Allowance Allocation Methodology for
2024 and Later Years \2\ (2024 Allocation Framework Rule) and the final
rule titled Phasedown of Hydrofluorocarbons: Review and Renewal of
Eligibility for Application-Specific Allowances \3\ (2025 Application-
specific Allowance Review and Renewal Rule). The 2025 Application-
specific Allowance Review and Renewal Rule established an annual set-
aside of 1,000,000 metric tons exchange value equivalent (MTEVe) of
allowances to be available for the use of hydrofluorocarbons (HFCs) as
a propellent in metered dose inhalers (``MDI set-aside'') if the
requester meets the criteria for the unique circumstances established
in 40 CFR 84.13(b)(1)(iii). These allowances were withheld by the EPA
from the October 1, 2025, allocation of 2026 HFC general pool
allowances in order to accommodate unforeseen HFC needs, related to use
as a propellant in MDIs, resulting from a global pandemic, other public
health emergencies, or other healthcare system needs. Entities that use
HFCs as a
[[Page 31451]]
propellant in MDIs had until April 30, 2026, to apply for these
allowances. Having received no applications for MDI set-aside
allowances by the April 30, 2026, deadline, the EPA has distributed the
entire 1,000,000.0 MTEVe pro-rata to general pool allowance holders.
The distributed allowances were allocated in a manner that is
proportionate to how many allowances the entity was allocated in the
calendar year 2026 allocation.
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\1\ 86 FR 55116, October 5, 2021.
\2\ 88 FR 46836, July 20, 2023.
\3\ 90 FR 41676, August 26, 2025.
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Note that allowances can only be expended to cover imports and
production in the calendar year for which they are allocated. In other
words, the allowances referenced in this notice may only be expended
through the end of this year, December 31, 2026.
The EPA distributed the 1,000,000.0 MTEVe MDI set-aside allowances
pro rata amongst the general pool of production allowance holders as
shown in Table 1.
Table 1--Pro Rata Distribution of Production Allowances
------------------------------------------------------------------------
Production
Entity allowances allocated
(MTEVe)
------------------------------------------------------------------------
Arkema............................................ 120,664.1
Chemours.......................................... 223,700.8
Iofina Chemical................................... 5.2
Mexichem Fluor.................................... 149,220.4
Solstice Advanced Materials US (formerly known as 506,409.5
Honeywell International).........................
---------------------
Total Issued.................................. 1,000,000.0
------------------------------------------------------------------------
The EPA distributed the 1,000,000.0 MTEVe MDI set-aside allowances
pro rata amongst the general pool of consumption allowance holders as
shown in Table 2.
Table 2--Pro Rata Distribution of Consumption Allowances
------------------------------------------------------------------------
Consumption
Entity allowances allocated
(MTEVe)
------------------------------------------------------------------------
A.C.S. Reclamation & Recovery (Absolute Chiller 734.3
Services)........................................
Ability Refrigerants.............................. 734.3
ACT Commodities................................... 0.3
Advance Auto Parts................................ 2,625.7
Advanced Specialty Gases.......................... 1,048.1
AFK & Co.......................................... 709.9
AFS Cooling....................................... 734.3
A-Gas............................................. 12,523.2
Air Liquide USA................................... 1,831.3
American Air Components........................... 734.3
Arkema............................................ 114,153.5
Artsen............................................ 3,774.7
Automart Distributors DBA Refrigerant Plus........ 734.3
AutoZone Parts.................................... 7,423.6
AW Product Sales & Marketing...................... 444.0
Bluon............................................. 122.9
CC Packaging...................................... 712.3
Chemours.......................................... 125,900.8
Chemp Technology.................................. 734.3
ChemPenn.......................................... 81.7
ComStar International............................. 1,323.7
Cross World Group................................. 734.3
Daikin America.................................... 11,464.5
EDX Industry...................................... 2,111.4
Electronic Fluorocarbons.......................... 383.1
Fireside Holdings DBA American Refrigerants....... 734.2
First Continental International................... 2,827.9
FluoroFusion Specialty Chemicals.................. 9,376.5
Freskoa USA....................................... 734.3
GlaxoSmithKline................................... 1,977.4
Golden Refrigerant................................ 734.3
Harp USA.......................................... 2,812.3
Hudson Technologies............................... 12,366.7
Hungry Bear....................................... 734.3
ICool USA......................................... 12,515.3
IGas Holdings..................................... 95,907.5
Iofina Chemical................................... 4.7
Kidde-Fenwal...................................... 734.3
Lenz Sales & Distribution......................... 4,078.7
Lina Trade........................................ 734.3
Linde............................................. 1,956.1
[[Page 31452]]
Matheson Tri-Gas.................................. 125.3
MEK Chemical Corporation.......................... 305.0
Meraki Group...................................... 734.3
Metalcraft........................................ 591.1
Mexichem Fluor.................................... 93,598.5
Mondy Global...................................... 1,170.8
National Refrigerants............................. 72,758.8
Nature Gas Import and Export...................... 3,010.8
North American Refrigerants....................... 734.3
O23 Energy Plus................................... 734.3
Perfect Score Too DBA Perfect Cycle............... 139.1
Reclamation Technologies.......................... 2,195.6
Resonac America................................... 244.0
RGAS.............................................. 17,539.8
RMS of Georgia.................................... 6,054.2
Sciarra Laboratories.............................. 31.9
SDS Refrigerant Services.......................... 734.3
Solstice Advanced Materials US (formerly known as 302,501.7
Honeywell International).........................
Solvay Fluorides.................................. 4,049.8
Summit Refrigerants............................... 734.3
SynAgile Corporation.............................. 4.1
Technical Chemical................................ 12,545.0
TradeQuim......................................... 734.3
Transocean Offshore Deepwater Drilling............ 0.1
Tulstar Products.................................. 2,696.7
Tyco Fire Products................................ 734.3
USSC Acquisition Corp............................. 482.6
Walmart........................................... 8,377.6
Waysmos USA....................................... 2,059.9
Wego Chemical Group............................... 207.8
Weitron........................................... 23,283.4
Wesco HMB......................................... 734.3
Wilhelmsen Ships Service.......................... 148.4
---------------------
Total Issued.................................. 1,000,000.0
------------------------------------------------------------------------
Table 3 reflects the distributed MDI set-aside allowances pro rata
amongst the general pool of consumption allowance holders, after taking
into account previously finalized administrative consequences.\4\
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\4\ For more information on the administrative consequences
finalized previously that are relevant for the allocation described
in this notice, see 90 FR 52391 (November 20, 2025) and 88 FR 72060
(October 19, 2023).
Table 3--Pro Rata Distribution of Consumption Allowances Adjusted for
Administrative Consequences
------------------------------------------------------------------------
Available consumption
allowances, adjusted
Entity for all
administrative
consequences (MTEVe)
------------------------------------------------------------------------
A.C.S. Reclamation & Recovery (Absolute Chiller 734.3
Services).......................................
Ability Refrigerants............................. 734.3
ACT Commodities.................................. 0.3
Advance Auto Parts............................... 2,625.7
Advanced Specialty Gases......................... 1,048.1
AFK & Co......................................... 709.9
AFS Cooling...................................... 734.3
A-Gas............................................ 12,523.2
Air Liquide USA.................................. 1,831.3
American Air Components.......................... 734.3
Arkema........................................... 114,153.5
Artsen........................................... 3,774.7
Automart Distributors DBA Refrigerant Plus....... 734.3
AutoZone Parts................................... 7,423.6
AW Product Sales & Marketing..................... 444.0
Bluon \a\........................................ 0.0
CC Packaging..................................... 712.3
Chemours......................................... 125,900.8
[[Page 31453]]
Chemp Technology................................. 734.3
ChemPenn......................................... 81.7
ComStar International............................ 1,323.7
Cross World Group................................ 734.3
Daikin America................................... 11,464.5
EDX Industry..................................... 2,111.4
Electronic Fluorocarbons......................... 383.1
Fireside Holdings DBA American Refrigerants...... 734.2
First Continental International.................. 2,827.9
FluoroFusion Specialty Chemicals................. 9,376.5
Freskoa USA...................................... 734.3
GlaxoSmithKline.................................. 1,977.4
Golden Refrigerant............................... 734.3
Harp USA......................................... 2,812.3
Hudson Technologies.............................. 12,366.7
Hungry Bear...................................... 734.3
ICool USA........................................ 12,515.3
IGas Holdings.................................... 95,907.5
Iofina Chemical.................................. 4.7
Kidde-Fenwal..................................... 734.3
Lenz Sales & Distribution........................ 4,078.7
Lina Trade....................................... 734.3
Linde............................................ 1,956.1
Matheson Tri-Gas................................. 125.3
MEK Chemical Corporation \b\..................... 244.0
Meraki Group..................................... 734.3
Metalcraft....................................... 591.1
Mexichem Fluor................................... 93,598.5
Mondy Global..................................... 1,170.8
National Refrigerants............................ 72,758.8
Nature Gas Import and Export..................... 3,010.8
North American Refrigerants...................... 734.3
O23 Energy Plus.................................. 734.3
Perfect Score Too DBA Perfect Cycle.............. 139.1
Reclamation Technologies......................... 2,195.6
Resonac America \a\.............................. 0.0
RGAS............................................. 17,539.8
RMS of Georgia................................... 6,054.2
Sciarra Laboratories............................. 31.9
SDS Refrigerant Services......................... 734.3
Solstice Advanced Materials (formerly known as 302,501.7
Honeywell International)........................
Solvay Fluorides................................. 4,049.8
Summit Refrigerants.............................. 734.3
SynAgile Corporation............................. 4.1
Technical Chemical............................... 12,545.0
TradeQuim........................................ 734.3
Transocean Offshore Deepwater Drilling........... 0.1
Tulstar Products................................. 2,696.7
Tyco Fire Products............................... 734.3
USSC Acquisition Corp............................ 482.6
Walmart.......................................... 8,377.6
Waysmos USA...................................... 2,059.9
Wego Chemical Group.............................. 207.8
Weitron.......................................... 23,283.4
Wesco HMB........................................ 734.3
Wilhelmsen Ships Service......................... 148.4
----------------------
Total Available.............................. 999,572.1
------------------------------------------------------------------------
\a\ The EPA has previously finalized administrative consequences for
these entities stating that the ``[EPA] [w]ill retire and/or revoke
allowances until the full administrative consequence is covered,'' (88
FR 72060, October 19, 2023).
\b\ The EPA has previously finalized an administrative consequence for
this entity for calendar year 2026. This administrative consequence
withholds twenty percent of their consumption allowances until the
entity comes back into compliance, at which point the EPA allocates it
to the allowance holder.
[[Page 31454]]
Judicial Review
The AIM Act provides that certain sections of the Clean Air Act
(CAA) ``shall apply to'' the AIM Act and actions ``promulgated by the
Administrator of [the EPA] pursuant to [the AIM Act] as though [the AIM
Act] were expressly included in title VI of [the CAA].'' 42 U.S.C.
7675(k)(1)(C). Among the applicable sections of the CAA is section 307,
which includes provisions governing judicial review. 42 U.S.C.
7607(b)(1). Section 307(b)(1) of the CAA provides, in part, that
petitions for review must only be filed in the United States Court of
Appeals for the District of Columbia Circuit: (i) when the agency
action consists of ``nationally applicable regulations promulgated, or
final actions taken, by the Administrator,'' or (ii) when such action
is locally or regionally applicable, but ``such action is based on a
determination of nationwide scope or effect and if in taking such
action the Administrator finds and publishes that such action is based
on such a determination.''
The distribution of MDI set-aside allowances for HFCs to the
general pool of production and consumption allowance holders herein
noticed is ``nationally applicable'' within the meaning of CAA section
307(b)(1). The AIM Act imposes a national cap on the total number of
allowances available for each year for all entities nationwide. 42
U.S.C. 7675(e)(2)(B) through (D). For 2026, there was a set-aside
amount of 1,000,000.0 MTEVe of allowances that were withheld by the EPA
from the general pool allowance holders pending applications for these
allowances from entities that use HFCs as propellants in MDIs. After
the April 30, 2026, deadline to apply, for which the EPA received no
applications, the Agency allocated the allowances pro rata to general
pool allowance holders as 2026 production and consumption allowances.
As such, the set-aside allowance allocation is the division and
assignment of a single, nationwide pool of set-aside allowances to
entities across the country according to the national methodology
established in the EPA's regulations. Each entity's set-aside allowance
allocation can be a relative share of that pool; thus, any additional
allowances awarded to one entity can directly affect the allocations to
others. For these reasons, the final action of the EPA allocating set-
aside allowances to entities located throughout the country is
nationally applicable.
Under section 307(b)(1) of the CAA, petitions for judicial review
of this allocation action must be filed in the United States Court of
Appeals for the District of Columbia Circuit by July 27, 2026.
Filing a petition for reconsideration by the Administrator does not
affect the finality of any action noticed herein for purposes of
judicial review nor does it extend the time within which a petition for
judicial review may be filed and shall not postpone the effectiveness
of such action. The final actions described herein may not be
challenged later in proceedings to enforce their requirements. 42
U.S.C. 7607(b)(2).
Aaron Szabo,
Assistant Administrator, Office of Air and Radiation.
[FR Doc. 2026-10534 Filed 5-26-26; 8:45 am]
BILLING CODE 6560-50-P
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