As the world grapples with the need to address climate change, policymakers have looked beyond carbon dioxide to other pollutants that could be reined in to control rising temperatures. In September, the U.S. Environmental Protection Agency (EPA) approved a new rule aimed at reducing hydrofluorocarbons (HFCs) by 85% over the next 15 years. Republicans, Democrats, industry leaders, and environmental groups alike praised the new rule, which went into effect in October. The EPA estimates that the emission reductions resulting from the rule in 2022 through 2050 will equal nearly the amount of carbon dioxide generated by the entire U.S. power sector for three years (at 2019 levels).

Why HFCs?

In the late 1980s, every country approved the 1987 Montreal Protocol, which sought to protect the ozone layer by phasing out substances such as chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs). These substances depleted the ozone layer that protects the earth from the sun’s harmful ultraviolet rays. HFCs were developed to replace CFCs and HCFCs. HFCs have since been extensively used in air conditioners, residential refrigerators, supermarket freezers, foams, aerosols, and other products such as building insulation and fire extinguishers. However, HFCs, which are invisible gases, leak from the appliances in which they are used. Moreover, while HFCs do not deplete the ozone, they do trap heat in the earth’s atmosphere. Indeed, depending on the type of HFC used, it can be hundreds or thousands of times more potent than carbon dioxide in its ability to warm the planet. The increased demand for air conditioning that global warming creates compounds the problem of HFCs’ greenhouse effect.

What Has Anyone Done About HFCs?

Parties to the 1987 Montreal Protocol approved the Kigali Amendment in 2016. With the amendment, nations resolved to phase down HFCs. While the U.S. did not approve the amendment, it had nonetheless attempted to phase down HFCs beginning in 2014 through EPA regulations. In 2017, a Court of Appeals decision brought this attempt to a halt by concluding the regulations exceeded EPA’s authority. In response, over a dozen states adopted similar regulations. By 2020, bipartisan support for a phase down of HFCs had developed in Congress, and the American Innovation and Manufacturing (AIM) Act became law. The act directed the EPA to phase down HFCs. As to the Kigali Amendment, the current administration issued an executive order in January of this year stating that it would send the amendment to the Senate for ratification. The administration took that step on November 16.

Federal Action

The AIM Act directed the EPA to promulgate within nine months a rule phasing down the production and consumption of HFCs through an allowance allocation and trading program. The HFC rule issued on September 23 establishes the baseline levels for an 85% reduction in HFCs within 15 years, as well as a methodology for allocating HFC allowances for 2022 and 2023. A later rulemaking will determine a methodology for subsequent year allowances. The HFC rule also creates a system of compliance and enforcement. The EPA adopted those provisions in part to avoid interference with phase down efforts caused by illegal trading of HFCs as experienced in Europe.

The current administration announced it plans to take an interagency approach to the enforcement of the HFC rule by creating a task force with the EPA and Department of Homeland Security. Experts from Homeland Security Investigations, U.S. Immigration and Customs Enforcement, and U.S. Customs and Border Protection will lead the task force, which is charged with detecting and deterring the illegal trade of HFCs. Those experts are expected to build upon their past experience at detecting and deterring the import of products that violated U.S. regulations regarding ozone and clean air. The task force will utilize, among other technologies, a system of QR codes to detect and track illegal shipments of HFCs.

Innovation from Industry

In addition to enforcement efforts, the current administration announced efforts to support the development of HFC alternatives in partnership with the public and private sectors. U.S. companies’ efforts to develop HFC alternatives preceded these announcements.  Indeed, Honeywell has made considerable investments in the development of HFC alternatives, and Carrier and Chemours have devised an HFC alternative for refrigeration systems. As further evidence of the industry’s inclination to innovate, recreational boat manufacturers are seeking an HFC alternative to use in the production of lightweight plastic for hulls. The new HFC rule provides greater regulatory certainty for industry and further encourages the development of HFC alternatives by significantly expanding the market for them.

 Furthermore, the new HFC rule is expected to markedly increase the demand for the manufacture of new equipment incorporating HFC alternatives, particularly for cooling and refrigeration systems. For example, ammonia can be used as an alternative refrigerant in supermarket freezers, and supermarkets have begun installing new ammonia-based systems. Similarly, air conditioner manufacturers now offer new models using hydrofluoroolefins, an HFC alternative. Given the extensiveness of HFC applications, the uses for alternatives are vast.

Other Steps

In October, the EPA acted on 10 petitions that, pursuant to the AIM Act, sought limits on the use of HFCs within many sectors including air conditioning, refrigerators, foams, and aerosols. (The EPA partially granted an eleventh petition and is continuing to evaluate two more received pursuant to the AIM Act.) As a result of the 10 petitions, the EPA has initiated additional rulemakings with a two-year timeframe for completion. In Congress, the Kigali amendment aimed at phasing down HFCs awaits ratification. The amendment’s approval appears achievable and would further demonstrate, to the 129 countries (including India and China) that have approved the amendment, U.S. commitment to phase down HFCs. With the HFC rule, the EPA has already begun the work necessary to achieve that phasedown, as well as created opportunities for innovation. Through these steps, government and industry, as well as countries, are working together to phase down HFCs and avoid the future negative impacts the substances would otherwise have on the health of the planet.

SOURCES 

Friedman, L. (2021, September 23). Biden Administration Makes First Major Move to Regulate Greenhouse Gases. The New York Times. Retrieved from https://www.nytimes.com/2021/09/23/climate/hydrofluorocarbons-hfc-climate-change.html

Grandoni, D. (2021, September 23). Greenhouse gases in grocery freezers are more powerful than carbon. The Washington Post. Retrieved from https://www.washingtonpost.com/climate-environment/2021/09/23/biden-climate-rule-hydrofluorocarbons/

Grandoni, D. (2021, November 16). Biden submits treaty fighting climate super-pollutants for Senate approval. The Washington Post. Retrieved from https://www.washingtonpost.com/climate-environment/2021/11/16/biden-kigali-amendment-senate/

Institute for Governance and Sustainable Development. (2021, October 8). EPA Accepts Petitions to Eliminate Super Polluting HFCs. Retrieved from https://www.igsd.org/epa-accepts-petitions-to-eliminate-super-polluting-hfcs/

Lee, S. (2021, May 5). Biden’s First Big Swing at Cooling the Planet: HFCs Explained. Bloomberg Law. Retrieved from https://news.bloomberglaw.com/environment-and-energy/bidens-first-big-swing-at-cooling-the-planet-hfcs-explained

Marcacci, S. (2021, September 29). Biden’s Latest Climate Move Is Worth Billions: Cutting Hydrofluorocarbons Boosts U.S. Manufacturing and Imports. Forbes. Retrieved from https://www.forbes.com/sites/energyinnovation/2021/09/29/bidens-latest-climate-move-is-worth-billions-to-us-manufacturers-why-cutting-hydrofluorocarbons-is-so-important-to-the-economy/?sh=37f0df826d68

Minnesota Pollution Control Agency. Chlorofluorocarbons (CFCs) and Hydrofluorocarbons (HFCs). Retrieved from https://www.pca.state.mn.us/air/chlorofluorocarbons-cfcs-and-hydrofluorocarbons-hfcs

The White House. (2021, September 23). Biden Administration Combats Super-Pollutants and Bolsters Domestic Manufacturing with New Programs and Historic Commitments [Fact sheet]. Retrieved from https://www.whitehouse.gov/briefing-room/statements-releases/2021/09/23/fact-sheet-biden-administration-combats-super-pollutants-and-bolsters-domestic-manufacturing-with-new-programs-and-historic-commitments

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U.S. Environmental Protection Agency. Protecting Our Climate by Reducing Use of HFCs. Retrieved from https://www.epa.gov/climate-hfcs-reduction 

U.S. Environmental Protection Agency. Phasedown of Hydrofluorocarbons (HFCs): Issuing Allowance Allocations. Retrieved from https://www.epa.gov/climate-hfcs-reduction/phasedown-hydrofluorocarbons-hfcs-issuing-allowance-allocations

U.S. Environmental Protection Agency, Air and Radiation. (2021, October 8). EPA Acts on Petitions to Cut Climate-Damaging HFCs, Will Begin AIM Act Rulemaking Process [News release]. Retrieved from https://www.epa.gov/newsreleases/epa-acts-petitions-cut-climate-damaging-hfcs-will-begin-aim-act-rulemaking-process

Volcovici, V. (2021, September 23). Biden administration takes aim at climate warming gas. Reuters. Retrieved from https://www.reuters.com/business/sustainable-business/biden-administration-takes-aim-climate-warming-gas-2021-09-23