EPA Releases HFC Allocation Rule, Includes Cylinder Ban and QR Code Tracking

Today the Environmental Protection Agency released the final rule for how it will allocate HFC production and imports for the years 2022 and 2023. This rule determines which companies are allowed to produce or import HFCs and much can be produced by each company including refrigerants. The actual allocation of production and import allowances will be released by October 1.

The final rule also maintains several compliance measures including a future ban on filling single-use disposable cylinders starting on January 1, 2025 and all previous inventories of single-use disposable cylinders must be sold by January 1, 2027. This is a roughly two-year delay from the proposed rule. HARDI strongly opposes this ban and believe the EPA is exceed its authority granted under the AIM Act to regulate the sale of cylinders. 

The rule also finalized the QR code tracking system that will require distributors to scan each cylinder in and out of the warehouse as it is bought, sold, and returned in the case of refillable cylinders. HARDI opposed the use of this tracking technology because it is both difficult to implement with current practices and could expose business’s confidential business information including a list of customers and refrigerant sales. EPA has said the information would be keep confidential, however the risk of data breach still exists. 

HARDI is examining options to continue to fight against these provisions.

Fact sheet on the rule is available here.

Pre-publication draft of the final rule is available here.

More information about the proposed rules is available in our past postings on the proposed rule and our comments. 

If you have any questions about the final rule feel free to reach out to Alex Ayers.