EPA Announces Plans to Formally Withdraw Refillable Cylinder and QR Code Tracking Requirements from Allocation Rule

Update (12/28): Check out HARDI's latest update on the EPA's ruling in the article here.

The Environmental Protection Agency has announced it plans to withdraw the refillable cylinder and QR code tracking requirements established by the allocation rule in 2021. HARDI sued the EPA over the requirements outlining how the agency exceeded the authority granted by the American Innovation and Manufacturing Act, and the U.S. District Court of Appeals agreed, requiring the agency to vacate portions of the rule. This announcement is the EPA signaling their intent to comply with the court order. From the EPA website:

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

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

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

In June 2023, the U.S. Appeals Court for the District of Columbia Circuit found that the EPA had not cited adequate authority and as a result vacated the requirement. The Agency is acting consistent with the decision and is not implementing or enforcing the QR code and tracking requirements for all cylinders containing HFCs found at 40 CFR 84.23. EPA intends to undertake a rulemaking to formally remove this requirement from the Code of Federal Regulations. Separately, EPA has proposed to require container tracking for HFCs that could be used in the servicing, repair, and/or installation of refrigerant-containing equipment or fire suppression equipment in the recent Emissions Reduction and Reclamation rule proposed under subsection (h) of the AIM Act.

It is interesting to note in the language used in both answers that the “EPA had not cited adequate authority,” while HARDI made the argument that the requirements were beyond the authority granted by the statute, to which the court said, “We agree.” HARDI will continue to push back on EPA trying to reinstate these requirements through other rulemakings, including the subsection (h) proposal. Distributors can submit comments to the EPA here.

For any questions about the HFC phase-down and the HARDI v. EPA lawsuit, please contact Alex Ayers.

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