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AGENCY:
Environmental Protection Agency (EPA).
ACTION:
Notice.
SUMMARY:
The Environmental Protection Agency (EPA) has issued calendar year 2025 allowances for the production and consumption of hydrofluorocarbons in accordance with the Agency's regulations. This issuance of allowances is undertaken pursuant to the American Innovation and Manufacturing Act, which directs the Environmental Protection Agency by October 1 of each calendar year to determine the quantity of production and consumption allowances for the following calendar year. In this notice, the Agency is also providing notice of separate Agency actions previously taken to establish administrative consequences for specific entities. These previously finalized actions withheld, retired, or revoked the identified entities' newly-issued calendar year 2025 allowances in accordance with the administrative consequence regulatory provisions.
FOR FURTHER INFORMATION CONTACT:
Andy Chang, U.S. Environmental Protection Agency, Stratospheric Protection Division, telephone number: 202-564-6658; email address: chang.andy@epa.gov. You may also visit EPA's website at https://www.epa.gov/climate-hfcs-reduction for further information.
SUPPLEMENTARY INFORMATION:
Subsection (e)(2)(D)(i) of the American Innovation and Manufacturing Act of 2020 (AIM Act) directs the Environmental Protection Agency (EPA) to determine, by October 1 of each calendar year, the quantity of allowances for the production and consumption of regulated substances that may be used for the following calendar year. EPA has codified the production and consumption baselines and phasedown schedules for regulated substances in 40 CFR 84.7. Under the phasedown schedule, for 2025, total production allowances may not exceed 229,521,263 metric tons of exchange value equivalent (MTEVe) and total consumption allowances may not exceed 181,522,990 MTEVe.
EPA regulations at 40 CFR part 84, subpart A, outline the process by which the Agency determines the number of allowances each entity is allocated. EPA allocated allowances consistent with the regulatory requirements, and has posted entity-specific allowance allocations on its website at https://www.epa.gov/climate-hfcs-reduction. An allowance allocated under the AIM Act does not constitute a property right and is a limited authorization for the production or consumption of a regulated substance.
Note that while allowances may be transferred or conferred once they are allocated, they can only be expended to cover imports and production in the calendar year for which they are allocated. In other words, calendar year 2025 allowances may only be expended for production and import of bulk HFCs between January 1, 2025, and December 31, 2025.
Application-Specific Allowances
EPA established the methodology for issuing application-specific allowances in the 2021 final rule titled Phasedown of Hydrofluorocarbons: Establishing the Allowance Allocation and Trading Program Under the American Innovation and Manufacturing Act (86 FR 55116, Oct. 5, 2021) and codified the methodology for allocations in 40 CFR 84.13. Because application-specific allowances can be expended to either produce or import HFCs, and application-specific allowances must be provided from within the overall annual production and consumption caps, EPA subtracts the amount of application-specific allowances allocated from both the production and consumption general allowance pools. EPA issues application-specific allowances to end users in five applications established by the AIM Act: propellants in metered dose inhalers (MDIs), defense sprays, structural composite preformed polyurethane foam for marine use and trailer use, etching of semiconductor material or wafers and the cleaning of chemical vapor deposition chambers within the semiconductor manufacturing sector, and onboard aerospace fire suppression. Additionally, EPA issues application-specific allowances to the U.S. Department of Defense for mission-critical military end uses.
Applying the methodology codified in 40 CFR 84.13, EPA allocated the number of application-specific allowances shown in Table 1.
Table 1—Number of Calendar Year 2025 Application-Specific Allowances Allocated Per Entity
| Entity | Application | Application-specific allowances (MTEVe) allocated |
|---|---|---|
| Analog Devices | Semiconductors | 15,998.9 |
| Applied Materials | Semiconductors | 2,290.4 |
| Armstrong Pharmaceuticals | Propellants in MDIs | 237,054.0 |
| ASML US | Semiconductors | 1,033.8 |
| AstraZeneca Pharmaceuticals | Propellants in MDIs | 2,677.0 |
| Aurobindo Pharma USA | Propellants in MDIs | 23,196.2 |
| Compsys | Structural Composite Preformed Polyurethane Foam | 16,066.0 |
| Defense Technology | Defense Sprays | 5,297.2 |
| Diodes Incorporated | Semiconductors | 1,410.2 |
| General Electric | Semiconductors | 147.7 |
| GlaxoSmithKline | Propellants in MDIs | 507,289.7 |
| GlobalFoundries | Semiconductors | 117,767.1 |
| Hitachi High-Tech America | Semiconductors | 113.0 |
| IBM Corporation | Semiconductors | 613.0 |
| Intel Corporation | Semiconductors | 528,200.3 |
| Invagen Pharmaceuticals | Propellants in MDIs | 59,385.2 |
| Jireh Semiconductor | Semiconductors | 2,315.5 |
| Keysight Technologies | Semiconductors | 538.8 |
| Kindeva Drug Delivery | Propellants in MDIs | 492,000.0 |
| LA Semiconductor | Semiconductors | 2,067.3 |
| Lam Research Corp. | Semiconductors | 45,436.9 |
| Lupin | Propellants in MDIs | 19,031.0 |
| Magic Leap | Semiconductors | 516.9 |
| Medtronic Tempe Campus | Semiconductors | 455.1 |
| Microchip Technology | Semiconductors | 7,387.2 |
| Micron Technology | Semiconductors | 21,068.2 |
| Newport Fab DBA TowerJazz | Semiconductors | 4,250.5 |
| Northrop Grumman Corporation | Semiconductors | 2,793.6 |
| NXP Semiconductor | Semiconductors | 34,081.1 |
| Polar Semiconductor | Semiconductors | 9,151.7 |
| Proteng Distribution | Onboard Aerospace Fire Suppression | 6,723.4 |
| Qorvo Texas | Semiconductors | 470.0 |
| Renesas Electronics America | Semiconductors | 940.1 |
| Samsung Austin Semiconductor | Semiconductors | 235,624.8 |
| Security Equipment Corporation | Defense Sprays | 93,229.5 |
| Semiconductor Components Industries DBA ON Semiconductor | Semiconductors | 35,794.8 |
| SkyWater Technology | Semiconductors | 10,463.5 |
| Skyworks Solutions | Semiconductors | 2,067.6 |
| Taiwan Semiconductor Manufacturing Company Arizona Corporation (TSMC Arizona Corporation) | Semiconductors | 120,485.4 |
| Texas Instruments | Semiconductors | 214,219.4 |
| The Research Foundation for The State University of New York at NY CREATES | Semiconductors | 11,678.4 |
| Tokyo Electron U.S. Holdings | Semiconductors | 5,123.9 |
| Tower Semiconductor San Antonio | Semiconductors | 3,290.4 |
| TSMC Washington (formerly WaferTech) | Semiconductors | 10,384.5 |
| UC San Diego | Semiconductors | 940.1 |
| UDAP Industries | Defense Sprays | 110,727.8 |
| Wabash National Corporation | Structural Composite Preformed Polyurethane Foam | 49,299.5 |
| Wolfspeed | Semiconductors | 15,779.7 |
| X-FAB Texas | Semiconductors | 1,262.5 |
| Department of Defense | Mission-critical Military End Uses | 6,238,033.5 |
| Total Issued | All | 9,326,172.3 |
Table 2—Number of Calendar Year 2025 Production Allowances Allocated per Entity
Table 3—Number of Calendar Year 2025 Consumption Allowances Allocated per Entity
Table 4—Summary of Administrative Consequences Taken Pursuant to 40 CFR 84.35 for Calendar Year 2025 Application-Specific Allowances, Effective September 30, 2024
| Entity | Number of affected allowances (MTEVe) | Administrative consequence action | Reasoning |
|---|---|---|---|
| ASML US | 206.8 | Withhold | Failure to submit auditing report as required in 40 CFR 84.33. |
| Proteng Distribution | 1,344.7 | Withhold | Failure to submit auditing report as required in 40 CFR 84.33. |
| Wolfspeed | 3,155.9 | Withhold | Failure to submit auditing report as required in 40 CFR 84.33. |
| ASML US submitted an auditing report on September 27, 2024, and the Agency is reviewing that submission. |
Table 5—Summary of Administrative Consequences Pursuant to 40 CFR 84.35 for Calendar Year 2025 Consumption Allowances, Effective September 30, 2024
| Entity | Number of affected allowances (MTEVe) | Administrative consequence action | Reasoning |
|---|---|---|---|
| AFK & Co. | 941.4 706.1 | Retire Revoke | Imported regulated HFCs without expending requisite number of allowances. |
| AutoZone Parts | 21,763.1 10,881.6 | Retire Revoke | Imported regulated HFCs without expending requisite number of allowances. |
| Wesco HMB | 5,432.1 2,716.1 | Retire Revoke | Sold, distributed, or offered for sale or distribution regulated HFCs that were imported without the requisite expenditure of allowances. |
| Solvay Fluorides | 139,472.6 | Withhold | Failure to submit auditing report as required in 40 CFR 84.33. |
| Wilhelmsen Ships Service | 5,110.1 | Withhold | Failure to submit auditing report as required in 40 CFR 84.33. |
| This value corresponds to 75% of the full amount of consumption without requisite allowances at the time of import. As stated in the HFC Allocation Framework Rule (86 FR 55116, Oct. 5, 2021), EPA explained it would take a 50% premium in first instances of administrative consequences. However, EPA has previously finalized administrative consequences for AFK & Co. for the same reasoning. | |||
| As stated in the HFC Allocation Framework Rule (86 FR 55116, Oct. 5, 2021), EPA explained it would take a 50% premium in first instances of administrative consequences. This value corresponds to 50% of the full amount of consumption without requisite allowances at the time of import. | |||
| As stated in the HFC Allocation Framework Rule (86 FR 55116, Oct. 5, 2021), EPA explained it would take a 50% premium in first instances of administrative consequences. This value corresponds to 50% of the full amount of regulated HFCs on a MTEVe-weighted basis that were sold, distributed, or offered for sale or distribution. |
Table 6—Summary of Administrative Consequences Pursuant to 40 CFR 84.35 for RACA Submitters, Effective September 30, 2024
| Entity | Number of affected allowances (MTEVe) | Applicable year(s) | Administrative consequence action | Reasoning |
|---|---|---|---|---|
| Fike Corporation | 20% of granted RACAs | 2025 | Withhold | Failure to submit auditing report as required in 40 CFR 84.33. |
| Firetrace USA | 20% of granted RACAs | 2025 | Withhold | Failure to submit auditing report as required in 40 CFR 84.33. |
Table 7—Calendar Year 2025 Allowances Adjusted Through Finalized Administrative Consequences Pursuant to 40 CFR 84.35
Table 8—Number of Calendar Year 2025 Application-Specific Allowances Available to Each Entity as of October 1, 2024, Adjusted for Administrative Consequences
Table 9—Total Number of Calendar Year 2025 Consumption Allowances Available to Each Entity as of October 1, 2024, Adjusted for Administrative Consequences
| Entity | Available consumption allowances, adjusted for all administrative consequences (MTEVe) |
|---|---|
| Application-specific allowances | 9,321,464.9 |
| A.C.S. Reclamation & Recovery (Absolute Chiller Services) | 127,006.0 |
| Ability Refrigerants | 127,006.0 |
| ACT Commodities | 49.4 |
| Advance Auto Parts | 454,129.5 |
| Advanced Specialty Gases | 181,274.3 |
| AFK & Co | 120,586.1 |
| AFS Cooling | 127,006.0 |
| A-Gas | 2,165,990.0 |
| Air Liquide USA | 316,740.9 |
| American Air Components | 0.0 |
| Arkema | 19,743,794.0 |
| Artsen | 650,046.9 |
| Automart Distributors DBA Refrigerant Plus | 127,006.0 |
| AutoZone Parts | 1,251,215.7 |
| AW Product Sales & Marketing | 76,793.5 |
| Bluon | 0.0 |
| CC Packaging | 123,195.8 |
| Chemours | 21,775,580.8 |
| Chemp Technology | 127,006.0 |
| ChemPenn | 14,122.6 |
| ComStar International | 228,938.8 |
| Creative Solution | 127,006.0 |
| Cross World Group | 127,006.0 |
| Daikin America | 1,982,882.5 |
| EDX Industry | 365,186.7 |
| Electronic Fluorocarbons | 65,973.7 |
| Fireside Holdings DBA American Refrigerants | 126,992.3 |
| First Continental International | 489,116.1 |
| FluoroFusion Specialty Chemicals | 1,614,745.2 |
| Freskoa USA | 127,006.0 |
| GlaxoSmithKline | 342,003.0 |
| Golden Refrigerant | 127,006.0 |
| Harp USA | 486,407.0 |
| Honeywell International | 51,631,535.0 |
| Hudson Technologies | 2,138,919.7 |
| Hungry Bear | 127,006.0 |
| ICool USA | 2,164,632.9 |
| IGas Holdings | 16,587,997.7 |
| Iofina Chemical | 803.9 |
| Kidde-Fenwal | 127,006.0 |
| Lenz Sales & Distribution | 705,440.7 |
| Lina Trade | 127,006.0 |
| Linde | 338,329.0 |
| Matheson Tri-Gas | 21,677.4 |
| MEK Chemical Corporation | 52,749.3 |
| Meraki Group | 127,006.0 |
| Metalcraft | 102,239.8 |
| Mexichem Fluor DBA Koura | 16,188,629.9 |
| Mondy Global | 202,490.2 |
| National Refrigerants | 12,584,245.9 |
| Nature Gas Import and Export | 520,748.2 |
| North American Refrigerants | 127,006.0 |
| O23 Energy Plus | 127,006.0 |
| Perfect Score Too DBA Perfect Cycle | 24,052.4 |
| Reclamation Technologies | 379,747.9 |
| Resonac America | 0.0 |
| RGAS | 2,906,639.4 |
| RMS of Georgia | 1,047,117.2 |
| Sciarra Laboratories | 5,524.8 |
| SDS Refrigerant Services | 127,006.0 |
| Solvay Fluorides | 560,974.1 |
| Summit Refrigerants | 127,006.0 |
| SynAgile Corporation | 714.5 |
| Technical Chemical | 2,169,768.2 |
| TradeQuim | 127,006.0 |
| Transocean Offshore Deepwater Drilling | 10.6 |
| Tulstar Products | 466,417.0 |
| Tyco Fire Products | 127,006.0 |
| USSC Acquisition Corp | 83,475.4 |
| Walmart | 1,448,967.1 |
| Waysmos USA | 356,280.8 |
| Wego Chemical Group | 35,931.8 |
| Weitron | 4,027,063.6 |
| Wesco HMB | 118,847.2 |
| Wilhelmsen Ships Service | 20,553.2 |
| See Table 8; this value corresponds to the total number of application-specific allowances available on October 1, 2024, after adjusting for administrative consequences. | |
| While these entities were eligible for revoked and redistributed consumption allowances with an effective date of September 30, 2024, the Agency has previously finalized administrative consequences for them stating that “[EPA] [w]ill retire and revoke allowances until the full administrative consequence is covered” (88 FR 72060, Oct. 19, 2023). |