information on the relevant costs and benefits of this action, if
finalized as proposed, and to comply with executive orders. To the
extent that EPA has relied upon costs and benefits estimates for
purposes of analyzing factors under subsection (i)(4), as discussed in
sections VII.E and VII.F of this preamble, EPA has summarized those
estimates in the Costs and Environmental Impacts TSD.
    In the RIA addendum, EPA also included estimates of the social cost
of HFCs in order to quantify climate benefits, chiefly for the purpose
of providing useful information to the public and to comply with E.O.
12866. Although EPA is using the social costs of HFCs for purposes of
that assessment, this proposed action does not rely on the estimates of
these costs as a record basis for the agency action, and EPA would
reach the proposed conclusions even in the absence of the social costs
of HFCs.

A. Assessment of Costs and Additional Benefits Utilizing Transition
Options

    The RIA addendum conducted for this proposed rule follows a
methodology that is consistent with the costs and benefits analysis
detailed in the Allocation Framework RIA, released in 2021, as well as
the Addendum to that RIA accompanying the proposed 2024 Allocation
Rule. In the Allocation Framework RIA and that Addendum, costs and
benefits are calculated for the entire compliance period of the HFC
phasedown (2022-2036), using a marginal abatement cost (MAC) curve to
evaluate the availability and cost of abatement required to meet the
AIM Act phasedown caps for production and consumption. Similarly, for
this proposed rule, EPA quantifies the costs associated with the
transitions necessary for compliance, but does so based on the sector-
and subsector-specific restrictions proposed by this rule as opposed to
an overall production and consumption cap. Both approaches, as
discussed in the respective RIAs, also quantify the monetized climate
benefits associated with the reduction in emissions over time as a
result of decreased consumption of regulated substances.\187\
---------------------------------------------------------------------------

    \187\ For the sake of comparison, results from both sets of
analyses are included in the RIA addendum contained in the docket.
---------------------------------------------------------------------------

    Because the phasedown in HFC consumption and production has already
been codified under the Allocation Framework Rule, with further changes
proposed under the 2024 Allocation Rule, the full extent of the
reductions that would result from this proposed rule are not considered
additional. Therefore, in calculating the impacts from this proposed
rule, we calculate the ``incremental'' costs and environmental impacts
(either increased or decreased) that this proposed rule would achieve
compared to what the Allocation Framework Rule as updated by the
proposed 2024 Allocation Rule achieves. This difference is considered
the additional costs and environmental impacts realized by this
proposed rule, should it be finalized as proposed.
    EPA estimates that the proposed rule would have incremental
benefits relative to those assessed for the Allocation Rules,
although--as discussed in the RIA addendum and the Costs and
Environmental Impacts TSD--the extent of these benefits varies
depending on the mix and timing of industry transitions made in order
to achieve compliance in affected subsectors. In its analysis of the
Allocation Rules, EPA estimated that regulated entities would adopt
specific technology transition options to achieve compliance with the
statutory allowance cap step-downs. Industry is already making many of
these transitions, and we expect that achieving the allowance cap step-
downs will require many of the same subsector-specific technology
transitions that would also be required by this proposed rule. However,
the rule may in some cases require regulated entities to further
accelerate transitions in specific subsectors, relative to what EPA
previously assumed in its analysis of the Allocation Rules. Conversely,
entities in a discrete set of subsectors not covered by this proposed
rule could conceivably forgo or delay adopting abatement options that
were assumed to be undertaken to comply with the Allocation Rules.
    Given this uncertainty, EPA analyzed two scenarios to represent the
range of potential incremental impacts resulting from the proposed
rule: a ``base case'' and ``high additionality case.'' Under the
proposed rule, EPA estimates that HFC emissions and consumption from
2025-2050 would be further reduced by an annual average of
approximately 5 to 35 MMTCO2e and 28 to 43
MMTCO2e, respectively. The annual incremental consumption
and emissions avoided are shown in Table 6 for select years as well as
on a cumulative basis.

           Table 6--Incremental Consumption and Emission Reductions From the Proposed Rule, 2025-2050
                                                    [MMTCO2e]
----------------------------------------------------------------------------------------------------------------
                                                      Consumption reductions            Emission reductions
                                                 ---------------------------------------------------------------
                      Year                                             High                            High
                                                     Base case     additionality     Base case     additionality
                                                                       case                            case
----------------------------------------------------------------------------------------------------------------
2025............................................               9              42             -52               8
2030............................................              26              51             -12              35
2035............................................              41              51               6              45
2040............................................              21              29              27              40
2045............................................              35              44              27              37
2050............................................              37              46              30              38
                                                 ---------------------------------------------------------------
Total (cumulative)..............................             735            1121             134             903
----------------------------------------------------------------------------------------------------------------

    In order to calculate the climate benefits associated with
consumption abatement, the consumption changes were expressed in terms
of emissions reductions. Emissions avoided in each year can also be
less than the consumption avoided in the same year because of the delay
between when an HFC is produced or imported and when it is emitted to
the atmosphere.
    As noted above, the base case scenario of incremental benefits
shows that this proposed rule would achieve overall emission reductions
over the full time horizon for implementation. However, the incremental
emissions reductions under the transition pathway evaluated for the
proposed rule are in some cases assumed to be more gradual than those
EPA previously estimated to occur with implementation of the Allocation
Rules. This is primarily because a) the base case does not include
certain actions to reduce consumption (and, consequently, reduce
emissions) previously assumed in the Allocation Rule reference case,
including increased leak reduction and enhanced recovery of HFCs, and
b) the assumed timing of emission reductions achieved or forgone
differs depending on assumed equipment lifetime and the subsector and
technology being modeled. Overall, the abatement options analyzed for
compliance with this proposed rule result in more consumption
reductions on a cumulative basis; however, some of the consequent
emission reductions in this proposal would come at a later time than
the emission reductions from the Allocation Rule reference case. As a
result, when compared to the analysis of the Allocation Rules, the base
case scenario results in slightly higher emissions in earlier model
years while yielding greater emission reductions in later years and
overall.
    Although the base case scenario is a reasonable projection of the
potential impacts of this proposed rule, there is reason to believe
that it is a conservative one, and that the incremental emission
reduction benefits associated with this proposed rule could be
substantially greater than reflected in the base case scenario.
Previous regulatory programs to reduce chemical use in the affected
industries show that regulated entities do not limit their response to
the required compliance level; rather, regulated entities may take
additional actions that transform industry practices for various
reasons, including the anticipation of future restrictions,
strengthening their competitive position, and supporting overall
environmental goals. For this reason, in the high additionality case we
assumed certain abatement options not covered by the proposed rule--but
which were assumed in the prior accounting of benefits for the
Allocation Rules--are also included to illustrate the potential for
incremental benefits. In both scenarios, on a cumulative basis the rule
is expected to yield incremental emission reductions, ranging from 134
to 903 MMTCO2e through 2050 (respectively, about 3 percent
and 20 percent of the total emissions over that same time period in the
Allocations Rules analyses). In the RIA addendum, we estimate the
present value of these incremental benefits to be between $5 billion
and $51 billion in 2020 dollars.

  Table 7--Summary of Annual Incremental Climate Benefits, Costs, and Net Benefits of the Technology Transitions Rule Base Case and High Additionality
                                                       Case Scenarios for the 2025-2050 Timeframe
                                                     [Millions of 2020$, discounted to 2022] a b c d
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Year                                   High additionality case
                                                         -----------------------------------------------------------------------------------------------
                                                                           Annual costs    Net benefits                    Annual costs    Net benefits
                        Base case                           Incremental      (negative     (3% benefits,    Incremental      (negative     (3% benefits,
                                                              climate       values are       3% or 7%         climate       values are       3% or 7%
                                                           benefits (3%)     savings)        costs) e      benefits (3%)     savings)        costs) e
--------------------------------------------------------------------------------------------------------------------------------------------------------
2025....................................................         -$3,603           -$395         -$3,209            $546             $31            $515
2029....................................................          -1,043              50          -1,092           2,563             335           2,227
2034....................................................             141            -200             340           3,739             -77           3,816
2036....................................................            -404            -677             273           3,213            -635           3,848
2040....................................................           2,669            -848           3,516           3,928            -784           4,712
2045....................................................           2,946            -786           3,732           4,031            -717           4,748
2050....................................................           3,606            -817           4,422           4,677            -743           5,419
--------------------------------------------------------------------------------------------------------------------------------------------------------

                 Discount rate                      3%         3%         7%        3%        7%         3%         3%         7%        3%        7%
--------------------------------------------------------------------------------------------------------------------------------------------------------
PV............................................     $5,084    -$8,045    -$4,225   $13,130    $9,309    $51,145    -$5,140    -$2,190   $56,285   $53,335
EAV...........................................        311       -492       -438       803       748      3,126       -314       -227     3,440     3,353
--------------------------------------------------------------------------------------------------------------------------------------------------------
a Benefits include only those related to climate. Climate benefits are based on changes in HFC emissions and are calculated using four different
  estimates of the SC-HFCs (model average at 2.5 percent, 3 percent, and 5 percent discount rates; 95th percentile at 3 percent discount rate). For
  purposes of this table, we show the effects associated with the model average at a 3 percent discount rate, but the Agency does not have a single
  central SC-HFC point estimate. We emphasize the importance and value of considering the benefits calculated using all four SC-HFC estimates. As
  discussed in Chapter 5 of the RIA addendum a consideration of climate effects calculated using discount rates below 3 percent, including 2 percent and
  lower, is also warranted when discounting intergenerational impacts.
b Rows may not appear to add correctly due to rounding.
c The annualized present value of costs and benefits are calculated as if they occur over a 26-year period from 2025 to 2050.
d The costs presented in this table are annual estimates.
e The PV for the 7% net benefits column is found by taking the difference between the PV of climate benefits at 3% and the PV of costs discounted at 7%.
  Due to the intergenerational nature of climate impacts the social rate of return to capital, estimated to be 7 percent in OMB's Circular A-4, is not
  appropriate for use in calculating PV of climate benefits.

    Climate benefits presented in Tables 7, 8, and 9 are based on
changes (increases or reductions) in HFC emissions compared to the
Allocation Framework Rule compliance case (i.e., after consideration of
the Allocation Framework Rule and proposed 2024 Allocation Rule) and
are calculated using four different global estimates of the social cost
of HFCs (SC-HFCs): the model average at 2.5 percent, 3 percent, and 5
percent discount rates and the 95th percentile at 3 percent discount
rate. For the presentational purposes of Table 7, we show the
incremental benefits associated with the average SC-HFCs at a 3 percent
discount rate, but

the Agency does not have a single central SC-HFCs point estimate.
    EPA estimates the climate benefits for this rule using a measure of
the social cost of each HFC (collectively referred to as SC-HFCs) that
is affected by the rule. The SC-HFCs is the monetary value of the net
harm to society associated with a marginal increase in HFC emissions in
a given year, or the benefit of avoiding that increase. In principle,
SC-HFCs includes the value of all climate change impacts, including
(but not limited to) changes in net agricultural productivity, human
health effects, property damage from increased flood risk and natural
disasters, disruption of energy systems, risk of conflict,
environmental migration, and the value of ecosystem services. As with
the estimates of the social cost of other GHGs, the SC-HFC estimates
are found to increase over time within the models--i.e., the societal
harm from one metric ton emitted in 2030 is higher than the harm caused
by one metric ton emitted in 2025--because future emissions produce
larger incremental damages as physical and economic systems become more
stressed in response to greater climatic change, and because gross
domestic product (GDP) is growing over time and many damage categories
are modeled as proportional to GDP. The SC-HFCs, therefore, reflects
the societal value of reducing emissions of the gas in question by one
metric ton. The SC-HFCs is the theoretically appropriate value to use
in conducting benefit-cost analyses of policies that affect HFC
emissions.
    The gas specific SC-HFC estimates used in this analysis were
developed using methodologies that are consistent with the methodology
underlying estimates of the social cost of other GHGs (carbon dioxide
[SC-CO2], methane [SC-CH4], and nitrous oxide
[SC-N2O]), collectively referred to as SC-GHG, presented in
the Technical Support Document: Social Cost of Carbon, Methane, and
Nitrous Oxide Interim Estimates under Executive Order 13990 published
in February 2021 by the Interagency Working Group on the Social Cost of
Greenhouse Gases (IWG) (IWG 2021). As a member of the IWG involved in
the development of the February 2021 SC-GHG TSD, the EPA agrees that
the TSD represents the most appropriate methodology for estimating the
social cost of greenhouse gases until revised estimates have been
developed reflecting the latest, peer-reviewed science. Therefore, EPA
views the SC-HFC estimates used in analysis to be appropriate for use
in benefit-cost analysis until improved estimates of the social cost of
other GHGs are developed.
    As discussed in the February 2021 TSD, the IWG emphasized the
importance and value of considering the benefits calculated using all
four estimates (model average at 2.5, 3, and 5 percent discount rates,
and 95th percentile at 3 percent discount rate). In addition, the TSD
explained that a consideration of climate benefits calculated using
discount rates below 3 percent, including 2 percent and lower, is also
warranted when discounting intergenerational impacts. As a member of
the IWG involved in the development of the February 2021 TSD, EPA
agrees with this assessment for the purpose of estimating climate
benefits from HFC reductions as well, and will continue to follow
developments in the literature pertaining to this issue.
    Table 8 presents the sum of incremental climate benefits across all
HFCs reduced for the proposed Technology Transitions Rule for 2025,
2029, 2034, 2036, 2040, 2045, and 2050 in the base case scenario.

Table 8--Incremental Climate Benefits for the Proposed Rule for Select Years From 2025-2050 (Base Case Scenario)
                                                       a b
                                               [Billions of 2020$]
----------------------------------------------------------------------------------------------------------------
                                            Incremental climate benefits by discount rate and statistic
                                 -------------------------------------------------------------------------------
              Year                                                                                3% (95th
                                     5% (average)        3% (average)       2.5% (average)        percentile)
----------------------------------------------------------------------------------------------------------------
2025............................                -1.5                -3.6                -4.8                -9.5
2029............................                -0.5                -1.0                -1.4                -2.8
2034............................                 0.1                 0.1                 0.2                 0.4
2036............................                 1.1                -0.4                -0.4                -1.2
2040............................                 1.3                 2.7                 3.5                 7.1
2045............................                 1.3                 2.9                 3.8                 7.8
2050............................                 1.7                 3.6                 4.6                 9.5
----------------------------------------------------------------------------------------------------------------
\a\ Benefits include only those related to climate. See Table 6-3 in the RIA addendum for the full time series
  of climate benefits using the SC-HFC.
\b\ Climate benefits are based on changes in HFC emissions and are calculated using four different estimates of
  the SC-HFCs (model average at 2.5 percent, 3 percent, and 5 percent discount rates; and 95th percentile at 3
  percent discount rate). The IWG emphasized, and EPA agrees with, the importance and value of considering the
  benefits calculated using all four estimates. As discussed in the Technical Support Document: Social Cost of
  Carbon, Methane, and Nitrous Oxide Interim Estimates under Executive Order 13990 (IWG 2021), a consideration
  of climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, are also
  warranted when discounting intergenerational impacts.

    EPA estimates that the present value of cumulative net incremental
benefits evaluated from 2025 through 2050 would range from $13.1
billion to $56.2 billion at a 3 percent discount rate, or $9.3 billion
to $53.3 billion at a 7 percent discount rate. These comprise
cumulative incremental climate benefits due to reducing HFC emissions
(with a present value ranging from $5 billion to $51.1 billion) as well
as cumulative incremental compliance savings (with a present value
ranging from $5.1 billion to $8 billion at a 3 percent discount rate or
$2.1 billion to $4.2 billion at a 7 percent discount rate).
    The estimation of incremental benefits due to reductions in HFC
emissions resulting from the proposed restrictions involved three
steps. First, the difference between the consumption of HFCs realized
under this proposed rule and the consumption that would have been
expected based on the analysis in the Allocation Framework RIA as
adjusted by the Addendum for the proposed 2024 Allocation Rule was
calculated for each year of the restrictions in metric tons of carbon
dioxide equivalent (MTCO2e). Although the Allocation
Framework Rule only required allowances for domestic bulk consumption
(i.e., in that rule, EPA defines consumption, with respect to a
regulated substance, to mean bulk production plus bulk imports minus

bulk exports), the consumption reduction estimates in the Allocation
Framework RIA included reductions in imported products containing HFCs.
Second, using EPA's Vintaging Model, the changes in consumption were
used to estimate changes in HFC emissions, which generally lag
consumption by some time as HFCs incorporated into equipment and
products are eventually released to the environment. Finally, the
climate benefits were calculated by multiplying the HFC emission
reductions for each year by the appropriate social cost of HFC to
arrive at the monetary value of HFC emission reductions.
    The incremental climate benefits of this rule derive mostly from
preventing the emissions of HFCs with high GWPs, thus reducing the
damage from climate change that would have been induced by those
emissions. The emission reductions attributed to this proposed rule are
only those beyond the reductions expected based on the Allocation
Framework Rule as updated by the proposed 2024 Allocation Rule, due to
more rapid and/or comprehensive transitions to HFC substitutes in
certain sectors or subsectors than would otherwise occur in the
Allocation Framework Rule compliance case. The reduction in emissions
follows from a reduction in the production and consumption of HFCs
measured in millions of MTCO2e, or MMTCO2e, that
would occur as a result of the restrictions proposed in this rule. It
is assumed that all HFCs produced or consumed would be emitted
eventually, either in their initial use (e.g., as propellants), during
the lifetime of HFC-containing products (e.g., off-gassing from closed-
cell foams or leaks from refrigeration systems), or during servicing--
including the reuse of HFC recovered and possibly reclaimed--or
disposal of HFC-containing products.
    EPA recognizes the shortcomings and limitations associated with the
current interim IWG estimates and underlying methodology. Since the SC-
HFC estimates are based on the same methodology underlying the SC-GHG
estimates presented in the IWG February 2021 TSD, they share a number
of limitations that are common to those SC-GHG estimates. The
limitations were outlined in the February 2021 TSD and include that the
current scientific and economic understanding of discounting approaches
suggests discount rates appropriate for intergenerational analysis in
the context of climate change are likely to be less than 3 percent,
near 2 percent or lower. Additionally, the Integrated Assessment Models
(IAMs) used to produce these estimates do not include all of the
important physical, ecological, and economic impacts of climate change
recognized in the climate change literature, and the science underlying
their ``damage functions''--i.e., the core parts of the IAMs that map
global mean temperature changes and other physical impacts of climate
change into economic (both market and nonmarket) damages--lags behind
the most recent research.
    The modeling limitations do not all work in the same direction in
terms of their influence on the SC-HFC estimates. However, as discussed
in the February 2021 TSD, the IWG has recommended that, taken together,
the limitations suggest that the SC-GHG estimates likely underestimate
the damages from GHG emissions. Therefore, as a member of the IWG
involved in the development of the February 2021 TSD, EPA agrees that
the interim SC-GHG estimates represent the most appropriate estimate of
the SC-GHG until revised estimates have been developed reflecting the
latest, peer reviewed science.

B. Scoping Analysis of Imports of Regulated Products

    In the Technology Transitions Rule RIA addendum, EPA examined the
scope of HFCs supplied in and emitted from equipment and products that
are imported to the United States containing HFCs. We explained that
the Allocation Framework Rule program does not require the expenditure
of allowances when importing products with HFCs to the United States.
We also indicated in the Allocation Framework Rule that subsection (i)
of the AIM Act provided authority that would be appropriate to address
such imports. In this proposed rule, under subsection (i) of the AIM
Act, restrictions are proposed to apply equally to imported and
domestically manufactured products and equipment that contain regulated
substances or blends containing a regulated substance.
    In the RIA addendum, we reiterate that while the Allocation
Framework Rule did not restrict imports of products containing HFCs,
the analysis performed for that rule as well as the proposed 2024
Allocation Rule assumed a whole-market approach. In other words,
transitions that were selected by the models to meet HFC consumption
reductions were assumed to apply equally to imported products and
domestically manufactured products. We were not at the time able to
distinguish the two because the models used (i.e., the Vintaging Model
and the MAC model) are agnostic as to the location of product
manufacture. The models are used to project demand for and emissions
from products containing HFCs in the United States or HFC emitting
processes carried out in the United States.
    To understand the historical and potential future scope of imports
in products, and the effects that the proposed restrictions could have,
EPA evaluated additional information to analyze eight scenarios as
explained in Annex D to the RIA addendum. The scenarios derived from
two approaches at estimates of what HFCs or substitutes are contained
in the imported products, two scenarios for how future imports would
grow, and two methods of evaluating the substitutes that would be used
in imported products to comply with the proposed restrictions. From
these calculations of reductions in the supply of HFCs inside products,
we applied a simplified emission model to estimate the time-dependent
emission reductions, which due to the multi-year use of some products
lag the initial supply. We used these emission reduction estimates, by
gas over time, and the same SC-HFCs factors from the Allocation
Framework RIA, to derive climate benefits. As described in the RIA
addendum, these estimates are provided as a scoping analysis and are
considered in whole just a subset of the climate benefits achieved from
other actions taken under the AIM Act.
    As detailed in Annex D to the RIA addendum, annual reductions in
the supply of HFCs in imported products ranged from 30.0 to 46.6
MMTCO2e in 2029, from 31.0 to 54.1 MMTCO2e in
2034, and from 31.0 to 57.1 MMTCO2e in 2036, depending on
the scenario. The cumulative reductions for the years 2025 through 2050
ranged from 829 to 1,540 MMTCO2e, equal to about 12 to 23
percent of the projected reductions in the Allocation Rules analysis
and about 11 to 20 percent of the combined projected reductions due to
the Allocation Rules plus the incremental reductions due to this
proposed Technology Transitions Rule.
    The emission reductions lag the reductions in supply as explained
in this section above but increase significantly as products expend
their lifecycle and HFCs are emitted. Annual emission reductions ranged
from 0 to 0.8 MMTCO2e in 2029, from 0 to 1.0
MMTCO2e in 2034, and from 0.9 to 2.8 MMTCO2e in
2036, depending on the scenario. The cumulative emissions reductions
for the years 2025 through 2050 ranged from 318 to 459
MMTCO2e, equal to about 7 to 10 percent of the projected
reductions in the Allocation

Rules analysis and essentially the same percentages for the combined
projected reductions in the Allocation Rules analysis plus the
incremental reductions due to this proposed Technology Transition Rule.
    Climate benefits of the emission reductions are shown in Table 9.
As noted in this section above, these benefits are not considered
additional to the Allocation Framework Rule or to this proposed rule
and are shown to inform the reader of the potential scope of the
benefits from restricting imported products using HFCs.

Table 9--Climate Benefits From Restricting Imports of Regulated Products
                              for 2025-2050
                 [Billions of 2020$, discounted to 2022]
------------------------------------------------------------------------
                                          Net climate benefits  at 3%
                                           (average)  discount rate
                Year                 -----------------------------------
                                           Range of eight  scenarios
------------------------------------------------------------------------
2025................................  0.
2029................................  0.
2034................................  0 to 0.1.
2036................................  0.1 to 0.2.
2040................................  2.2 to 2.7.
2045................................  3.0 to 4.1.
2050................................  4.0 to 6.6.
------------------------------------------------------------------------

XI. Statutory and Executive Order Review

A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review

    This action is an economically significant regulatory action that
was submitted to OMB for review. Any changes made in response to OMB
recommendations have been documented in the docket. A summary of the
potential costs and benefits associated with this action is included in
section X of this preamble, and EPA prepared an analysis of the
potential costs and benefits associated with this action, which is
available in Docket Number EPA-HQ-OAR-2021-0643.

B. Paperwork Reduction Act (PRA)

    The information collection activities in this proposed rule have
been submitted for approval to OMB under the PRA. The Information
Collection Request (ICR) document that EPA prepared has been assigned
EPA ICR number [2742.01]. You can find a copy of the ICR in the docket,
and it is briefly summarized here.
    Subsection (k)(1)(C) of the AIM Act states that section 114 of the
CAA applies to the AIM Act and rules promulgated under it as if the AIM
Act were included in title VI of the CAA. Thus, section 114 of the
Clean Air Act, which provides authority to the EPA Administrator to
require recordkeeping and reporting in carrying out provisions of the
CAA, also applies to and supports this rulemaking.
    EPA is proposing to apply labeling and packaging requirements to
products using either an HFC or a blend containing an HFC, in the
sectors and subsectors covered by this proposed rule, in order to
encourage compliance and aid enforcement. EPA is also proposing
recordkeeping and reporting requirements for any entity that
domestically manufactures or imports regulated products to allow the
Agency to review data and identify noncompliance with GWP restrictions
and inaccurate reporting.
    Respondents/affected entities: Respondents and affected entities
will be individuals or companies that manufacture, import, export,
package, sell or otherwise distribute a product within the sectors or
subsectors addressed by this proposed rule that uses or is intended to
use certain HFCs that are defined as a regulated substance under the
AIM Act, or blends that contain a regulated substance.
    Respondent's obligation to respond: Mandatory (AIM Act and section
114 of the CAA).
    Estimated number of respondents: 199,086,175.
    Frequency of response: Quarterly, annually, and as needed depending
on the nature of the report.
    Total estimated burden: 69,355 hours (per year) in the first year;
56,520 hours per year in all following years. Burden is defined at 5
CFR 1320.3(b).
    Total estimated cost \188\: $27,107,658 (per year) in the first
year, $25,475,817 per year thereafter, includes $19,955,215 annualized
capital or operation & maintenance costs.
---------------------------------------------------------------------------

    \188\ Costs are provided in 2022 dollars.
---------------------------------------------------------------------------

    An agency may not conduct or sponsor, and a person is not required
to respond to a collection of information unless it displays a
currently valid OMB control number. The OMB control numbers for EPA's
regulations in 40 CFR are listed in 40 CFR part 9.
    Submit your comments on the Agency's need for this information, the
accuracy of the provided burden estimates and any suggested methods for
minimizing respondent burden to EPA using the docket identified at the
beginning of this rule. EPA will respond to any ICR-related comments in
the final rule. You may also send your ICR-related comments to OMB's
Office of Information and Regulatory Affairs using the interface at
www.reginfo.gov/public/do/PRAMain. Find this particular information
collection by selecting ``Currently under Review--Open for Public
Comments'' or by using the search function. Since OMB is required to
make a decision concerning the ICR between 30 and 60 days after
receipt, OMB must receive comments no later than January 17, 2023.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic
impact on a substantial number of small entities under the RFA. The
small entities subject to the requirements of this action include
manufacturers of equipment or products within the affected subsectors
(e.g., manufacturers of stand-alone/self-contained refrigeration
systems, manufacturers of aerosol products, manufacturers of foam
products and appliances containing foam) or end-users of equipment
within affected subsectors (e.g., supermarkets, warehouse clubs/
superstores, convenience stores). EPA estimates that approximately 162
of the 51,047 potentially affected small businesses could incur costs
in excess of one percent of annual sales and that approximately 110
small businesses could incur costs in excess of three percent of annual
sales. Because there is not a significant percentage of small
businesses that may experience a significant impact, it can be presumed
that this action will have no SISNOSE. Details of this analysis are
presented in Economic Impact Screening Analysis for Restrictions on the
Use of Hydrofluorocarbons under Subsection (i) of the American
Innovation and Manufacturing Act, which is available in Docket Number
EPA-HQ-OAR-2021-0643.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect
small governments. The action imposes no enforceable duty on any state,
local or tribal governments or the private sector.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have
substantial direct effects on the states, on the relationship between
the national government and the states, or on the distribution of power
and responsibilities among the various levels of government.

F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

    This action does not have tribal implications as specified in
Executive Order 13175. It will not have substantial direct effects on
tribal governments, on the relationship between the Federal government
and Indian tribes, or on the distribution of power and responsibilities
between the Federal government and Indian tribes, as specified in
Executive Order 13175. Thus, Executive Order 13175 does not apply to
this action. EPA periodically updates tribal officials on air
regulations through the monthly meetings of the National Tribal Air
Association and will share information on this rulemaking through this
and other fora.

G. Executive Order 13045: Protection of Children From Environmental
Health and Safety Risks

    This action is subject to Executive Order 13045 because it is an
economically significant regulatory action as defined by Executive
Order 12866, and EPA believes that the environmental health or safety
risk addressed by this action has a disproportionate effect on
children. Accordingly, we have evaluated the environmental health or
safety effects of climate change on children.
    GHGs, including HFCs, contribute to climate change. The GHG
emissions reductions resulting from implementation of this rule will
further improve children's health. The assessment literature cited in
EPA's 2009 and 2016 Endangerment Findings concluded that certain
populations and life stages, including children, the elderly, and the
poor, are most vulnerable to climate-related health effects. The
assessment literature since 2016 strengthens these conclusions by
providing more detailed findings regarding these groups'
vulnerabilities and the projected impacts they may experience.
    These assessments describe how children's unique physiological and
developmental factors contribute to making them particularly vulnerable
to climate change. Impacts to children are expected from heat waves,
air pollution, infectious and waterborne illnesses, and mental health
effects resulting from extreme weather events. In addition, children
are among those especially susceptible to most allergic diseases, as
well as health effects associated with heat waves, storms, and floods.
Additional health concerns may arise in low-income households,
especially those with children, if climate change reduces food
availability and increases prices, leading to food insecurity within
households. More detailed information on the impacts of climate change
to human health and welfare is provided in section III.B of this
preamble.

H. Executive Order 13211: Actions That Significantly Affect Energy
Supply, Distribution, or Use

    This action is not a ``significant energy action'' because it is
not likely to have a significant adverse effect on the supply,
distribution or use of energy. This action applies to certain regulated
substances and certain applications containing regulated substances,
none of which are used to supply or distribute energy.

I. National Technology Transfer and Advancement Act (NTTAA)

    This rulemaking does not involve technical standards.

J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629, February 16, 1994) directs
federal agencies, to the greatest extent practicable and permitted by
law, to make environmental justice part of their mission by identifying
and addressing, as appropriate, disproportionately high and adverse
human health or environmental effects of their programs, policies, and
activities on minority populations (people of color and/or indigenous
peoples) and low-income populations.
    The EPA believes that the human health or environmental conditions
that exist prior to this action result in or have the potential to
result in disproportionate and adverse human health or environmental
effects on people of color, low-income populations and/or indigenous
peoples. EPA carefully evaluated available information on HFC
substitute production facilities and the characteristics of nearby
communities to evaluate these impacts in the context of this proposed
rulemaking. Based on this analysis, EPA finds evidence of environmental
justice concerns near HFC production facilities from cumulative
exposure to existing environmental hazards in these communities.
However, the Agency recognizes that restricting HFC use under the
Allocation Framework Rule may cause significant changes in the location
and quantity of production of both HFCs and their substitutes, and that
these changes may in turn affect emissions of hazardous air pollutants
at chemical production facilities. Thus, given uncertainties about
where and in what quantities HFC substitutes will be produced, EPA
cannot determine the extent to which this rule will exacerbate or
reduce existing disproportionate adverse effects on communities of
color and low-income people as specified in Executive Order 12898 (59
FR 7629, February 16, 1994).
    The EPA believes that it is practicable to assess whether this
action is likely to result in new disproportionately high and adverse
effects on people of color, low-income populations and/or indigenous
peoples. A summary of the Agency's approach for considering potential
environmental justice concerns as a result of this rulemaking can be
found in section III.C of the preamble, and our environmental justice
analysis can be found in the RIA addendum, available in the docket.
Based on the analysis, EPA determined that this rule will reduce
emissions of potent GHGs, which will reduce the effects of climate
change, including the public health and welfare effects on people of
color, low-income populations and/or indigenous peoples. As noted in
section III.C of this preamble, the Agency will continue to evaluate
the impacts of this program on communities with environmental justice
concerns and consider further action, as appropriate, to protect health
in communities affected by HFC substitute production.

List of Subjects in 40 CFR Part 84

    Environmental protection, Administrative practice and procedure,
Air pollution control, Chemicals, Climate change, Emissions, Imports,
Reporting and recordkeeping requirements.

Michael S. Regan,
Administrator.

    For the reasons stated in the preamble, EPA proposes to amend 40
CFR part 84 as follows:

PART 84--PHASEDOWN OF HYDROFLUOROCARBONS

0
1. The authority citation for part 84 continues to read as follows:

    Authority: Pub. L. 116-260, Division S, Sec. 103.

0
2. Add subpart B consisting of Sec. Sec.  84.50 through 84.66 to part
84 to read as follows:

Subpart B--Restrictions on the Use of Hydrofluorocarbons

Sec.
84.50 Purpose.

84.52 Definitions.
84.54 Prohibitions on use of hydrofluorocarbons.
84.56 Sectors and subsectors subject to use restrictions.
84.58 Exemptions.
84.60 Labeling.
84.62 Recordkeeping and reporting.
84.64 Technology transitions petition requirements.
84.66 Global warming potentials.

Sec.  84.50  Purpose.

    The purpose of the regulations in this subpart is to implement
subsection (i) of 42 U.S.C. 7675, with respect to establishing
restrictions on the use of a regulated substance in the sector or
subsector in which the regulated substance is used, and to provide
requirements associated with the submission of petitions seeking such
restrictions.

Sec.  84.52  Definitions.

    For the terms not defined in this subpart but that are defined in
Sec.  84.3, the definitions in Sec.  84.3 shall apply. For the purposes
of this subpart B:
    Blend containing a regulated substance means any mixture that
contains one or more regulated substances used in a sector or
subsector.
    Export means the transport of a regulated product from inside the
United States or its territories to persons outside the United States
or its territories, excluding United States military bases and ships
for onboard use.
    Exporter means the person who contracts to sell any regulated
product for export or transfers a regulated product to an affiliate in
another country.
    Importer means any person who imports any regulated product into
the United States. Importer includes the person primarily liable for
the payment of any duties on the merchandise or an authorized agent
acting on his or her behalf. The term also includes:
    (i) The consignee;
    (ii) The importer of record;
    (iii) The actual owner; or
    (iv) The transferee, if the right to withdraw merchandise from a
bonded warehouse has been transferred.
    Manufacture means to complete a product's manufacturing and
assembly processes such that it is ready for initial sale,
distribution, or operation. For equipment that is assembled and charged
in the field, manufacture means to complete the circuit holding the
regulated substance, charge with a full charge, and otherwise make
functional for use for its intended purpose.
    Product means an item or category of items manufactured from raw or
recycled materials which is used to perform a function or task. The
term product includes, but is not limited to: equipment, appliances,
components, subcomponents, foams, foam blowing systems (e.g., pre-
blended polyols), fire suppression systems or devices, aerosols,
pressurized dispensers, and wipes.
    Regulated product means any product in the sectors or subsectors
identified in Sec.  84.56 that contains or was manufactured with a
regulated substance or a blend that contains a regulated substance,
including products intended to be used with a regulated substance, or
that is otherwise subject to the prohibitions of this subpart.
    Retrofit means to upgrade existing equipment where the regulated
substance is changed, which--
    (i) Includes the conversion of equipment to achieve system
compatibility; and
    (ii) May include changes in lubricants, gaskets, filters, driers,
valves, o-rings, or equipment components for that purpose. Examples of
equipment subject to retrofit include air-conditioning and
refrigeration appliances, fire suppression systems, and foam blowing
equipment.
    Sector means a broad category of applications including but not
limited to: refrigeration, air conditioning and heat pumps; foam
blowing; aerosols; chemical manufacturing; cleaning solvents; fire
suppression and explosion protection; and semiconductor manufacturing.
    Subsector means processes, classes of applications, or specific
uses that are related to one another within a single sector or
subsector.
    Substitute means any substance, product, or alternative
manufacturing process, whether existing or new, that is used, or
intended for use, in a sector or subsector with a lower global warming
potential than the regulated substance, whether neat or used in a
blend, to which a use restriction would apply.
    Use means for any person to take any action with or to a regulated
substance, regardless of whether the regulated substance is in bulk,
contained within a product, or otherwise, except for the destruction of
a regulated substance. Actions include, but are not limited to, the
utilization, deployment, sale, distribution, discharge, incorporation,
transformation, or other manipulation.

Sec.  84.54  Prohibitions on use of hydrofluorocarbons.

    (a) Effective January 1, 2025, no person may manufacture or import
any product that uses or is intended to use a regulated substance or
blend containing a regulated substance as listed in Sec.  84.56(a),
(c), (d), and (e).
    (b) Effective January 1, 2026, no person may sell or distribute,
offer to sell or distribute, make available to sell or distribute,
purchase or receive, attempt to purchase or receive, or export any
product that uses or is intended to use a regulated substance or blend
containing a regulated substance as listed in Sec.  84.56(a), (c), (d),
and (e), except after a period of ordinary utilization or operation of
the product by an ultimate consumer.
    (c) Effective [DATE ONE YEAR AFTER DATE OF PUBLICATION OF THE FINAL
RULE IN THE FEDERAL REGISTER], beginning model year 2025, no person may
manufacture or import any mobile vehicle air-conditioning system for
light-duty passenger cars and trucks that uses or is intended to use a
regulated substance or a blend containing a regulated substance as
listed in Sec.  84.56(b).
    (d) Effective January 1, 2026, no person may sell or distribute,
offer to sell or distribute, make available to sell or distribute,
purchase or receive, attempt to purchase or receive, or export any
mobile vehicle air-conditioning system for light-duty passenger cars
and trucks that uses or is intended to use a regulated substance or a
blend containing a regulated substance as listed in Sec.  84.56(b),
except after a period of ordinary utilization or operation of the
product by an ultimate consumer.
    (e) Effective [DATE ONE YEAR AFTER DATE OF PUBLICATION OF THE FINAL
RULE IN THE FEDERAL REGISTER], beginning model year 2026, no person may
manufacture or import any mobile vehicle air-conditioning system for
medium-duty passenger vehicles, heavy-duty pick-up trucks, complete
heavy-duty vans, and certain nonroad vehicles that uses or is intended
to use a regulated substance or a blend containing a regulated
substance as listed in Sec.  84.56(b).
    (f) Effective January 1, 2027, no person may sell or distribute,
offer to sell or distribute, make available to sell or distribute,
purchase or receive, attempt to purchase or receive, or export any
mobile vehicle air-conditioning system for medium-duty passenger
vehicles, heavy-duty pick-up trucks, complete heavy-duty vans, and
certain nonroad vehicles that uses or is intended to use a regulated
substance or a blend containing a regulated substance as listed in
Sec.  84.56(b), except after a period of ordinary utilization or
operation of the product by an ultimate consumer.
    (g) Effective January 1, 2026, no person may manufacture or import
any

residential and light commercial air conditioning and heat pump--
variable refrigerant flow system, that uses or is intended to use a
regulated substance or a blend containing a regulated substance with a
global warming potential of 700 or greater.
    (h) Effective January 1, 2027, no person may sell or distribute,
offer to sell or distribute, make available to sell or distribute,
purchase or receive, attempt to purchase or receive, or export any
residential and light commercial air conditioning and heat pump--
variable refrigerant flow system, that uses or is intended to use a
regulated substance or a blend containing a regulated substance with a
global warming potential of 700 or greater, except after a period of
ordinary utilization or operation of the product by an ultimate
consumer.
    (i) Effective January 1, 2025, no person may import, sell,
distribute, offer for sale or distribution, or make available for sale
or distribution, any regulated product that is not labeled in
accordance with Sec.  84.60.
    (j) No person may sell, distribute, offer for sale or distribution,
or make available for sale or distribution, any product within a sector
or subsector containing, using, or intended to use a regulated
substance or blend containing a regulated substance that is in
violation of paragraphs (a) through (i) of this section, except for
such actions needed to re-export or recover the regulated substance and
destroy the product. Every kilogram of a regulated substance or blend
containing a regulated substance contained in or used in a product in
contravention of this paragraph constitutes a separate violation of
this subpart. Every kilogram of a regulated substance or blend
containing a regulated substance intended for use in a product in
contravention of this paragraph constitutes a separate violation of
this subpart. Sale or distribution, or offer for sale or distribution,
of products containing, using, or intended to use less than one
kilogram of a regulated substance or blend containing a regulated
substance in contravention of this paragraph constitutes a violation of
this subpart.
    (k) (1) No person may provide false, inaccurate, or misleading
information to EPA when reporting or providing any communication
required under this subpart.
    (2) No person may falsely indicate through marketing, packaging,
labeling, or other means that a product sold or distributed, or offered
for sale or distribution, uses a regulated substance, blend containing
a regulated substance, or substitute that differs from the regulated
substance, blend containing a regulated substance, or substitute that
is actually used.
    (l) Section (k) of the AIM Act states that sections 113, 114, 304,
and 307 of the Clean Air Act (42 U.S.C. 7413, 7414, 7604, 7607) shall
apply to this section and any rule, rulemaking, or regulation
promulgated by the Administrator pursuant to this section as though
this section were expressly included in title VI of that Act (42 U.S.C.
7671 et seq.). Violation of this part is subject to Federal enforcement
and the penalties laid out in section 113 of the Clean Air Act.

Sec.  84.56  Sectors and subsectors subject to use restrictions.

    (a) Refrigeration, air conditioning, and heat pump. Products in the
following subsectors within the refrigeration, air conditioning, and
heat pump sector are subject to the prohibitions in Sec.  84.54(a) and
(b):
    (1) Industrial process refrigeration systems with refrigerant
charge capacities of 200 pounds or greater, when using or intended to
use a regulated substance or a blend containing a regulated substance
with a global warming potential of 150 or greater, except as noted in
Sec.  84.56(a)(3);
    (2) Industrial process refrigeration systems with refrigerant
charge capacities less than 200 pounds, when using or intended to use a
regulated substance or a blend containing a regulated substance with a
global warming potential of 300 or greater, except as noted in Sec.
84.56(a)(3);
    (3) Industrial process refrigeration, specifically the high
temperature side of cascade systems used in industrial process
refrigeration applications, when using or intended to use a regulated
substance or a blend containing a regulated substance with a global
warming potential of 300 or greater;
    (4) Retail food refrigeration--stand-alone units, when using or
intended to use a regulated substance, or a blend containing a
regulated substance with a global warming potential of 150 or greater;
    (5) Retail food refrigeration--refrigerated food processing and
dispensing equipment, when using or intended to use a regulated
substance or a blend containing a regulated substance with a global
warming potential of 150 or greater;
    (6) Retail food refrigeration--supermarket systems with refrigerant
charge capacities of 200 pounds or greater, when using or intended to
use a regulated substance, or a blend containing a regulated substance
with a global warming potential of 150 or greater, except as noted in
Sec.  84.56(a)(8);
    (7) Retail food refrigeration--supermarket systems with refrigerant
charge capacities less than 200 pounds, when using or intended to use a
regulated substance or a blend containing a regulated substance with a
global warming potential of 300 or greater, except as noted in Sec.
84.56(a)(8);
    (8) Retail food refrigeration--supermarket, specifically the high
temperature side of cascade systems used in retail food refrigeration--
supermarket applications, when using or intended to use a regulated
substance or a blend containing a regulated substance with a global
warming potential of 300 or greater;
    (9) Retail food refrigeration--remote condensing units with
refrigerant charge capacities of 200 pounds or greater, when using or
intended to use a regulated substance or a blend containing a regulated
substance with a global warming potential of 150 or greater;
    (10) Retail food refrigeration--remote condensing units with
refrigerant charge capacities less than 200 pounds, when using or
intended to use a regulated substance or a blend containing a regulated
substance with a global warming potential of 300 or greater;
    (11) Cold storage warehouse systems with refrigerant charge
capacities of 200 pounds or greater, when using or intended to use a
regulated substance or a blend containing a regulated substance with a
global warming potential of 150 or greater, except as noted in Sec.
84.56(a)(13);
    (12) Cold storage warehouse systems with refrigerant charge
capacities less than 200 pounds, when using or intended to use a
regulated substance, or a blend containing a regulated substance with a
global warming potential of 300 or greater, except as noted in Sec.
84.56(a)(13);
    (13) Cold storage warehouse, specifically the high temperature side
of cascade systems used in cold storage facility applications, when
using or intended to use a regulated substance or a blend containing a
regulated substance with a global warming potential of 300 or greater;
    (14) Ice rink systems, when using or intended to use a regulated
substance or a blend containing a regulated substance with a global
warming potential of 150 or greater;
    (15) Automatic commercial ice machines--standalone, with
refrigerant charge capacities of 500 grams or lower, when using or
intended to use a regulated substance or a blend containing a regulated
substance with a

global warming potential of 150 or greater;
    (16) Automatic commercial ice machines--standalone, with
refrigerant charge capacities of more than 500 grams, when using or
intended to use any of the following: R-404A, R-507, R-507A, R-428A, R-
422C, R-434A, R-421B, R-408A, R-422A, R-407B, R-402A, R-422D, R-421A,
R-125/R-290/R-134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-
X5, R-417A, R-438A, R-410B, R-407A, R-410A, R-442A, R-417C, R-407F, R-
437A, R-407C, RS-24 (2004 formulation), and HFC-134a;
    (17) Automatic commercial ice machines--remote, when using or
intended to use any of the following: R-404A, R-507, R-507A, R-428A, R-
422C, R-434A, R-421B, R-408A, R-422A, R-407B, R-402A, R-422D, R-421A,
R-125/R-290/R-134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-
X5, R-417A, R-438A, and R-410B;
    (18) Transport refrigeration--intermodal containers, when using or
intended to use a regulated substance or a blend containing a regulated
substance with a global warming potential of 700 or greater;
    (19) Transport refrigeration--road systems, when using or intended
to use any of the following: R-404A, R-507, R-507A, R-428A, R-422C, R-
434A, R-421B, R-408A, R-422A, R-407B, R-402A, R-422D, R-421A, R-125/R-
290/R-134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-X5, R-
417A, R-438A, and R-410B;
    (20) Transport refrigeration--marine systems, when using or
intended to use any of the following: R-404A, R-507, R-507A, R-428A, R-
422C, R-434A, R-421B, R-408A, R-422A, R-407B, R-402A, R-422D, R-421A,
R-125/R-290/R-134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-
X5, R-417A, R-438A, and R-410B;
    (21) Residential refrigeration systems, when using or intended to
use a regulated substance or a blend containing a regulated substance
with a global warming potential of 150 or greater;
    (22) Chillers--industrial process refrigeration, when using or
intended to use a regulated substance or a blend containing a regulated
substance with a global warming potential of 700 or greater, except
where the temperature of the chilled fluid leaving the chiller is less
than -58 [deg]F (-50 [deg]C);
    (23) Chillers--comfort cooling, when using or intended to use a
regulated substance or a blend containing a regulated substance with a
global warming potential of 700 or greater;
    (24) Residential and light commercial air-conditioning and heat
pump systems, when using or intended to use a regulated substance or a
blend containing a regulated substance with a global warming potential
of 700 or greater, except for variable refrigerant flow air-
conditioning systems;
    (25) Residential dehumidifiers, when using or intended to use a
regulated substance or a blend containing a regulated substance with a
global warming potential of 700 or greater; and
    (26) Vending machines, when using or intended to use a regulated
substance or a blend containing a regulated substance with a global
warming potential of 150 or greater.
    (b) Motor vehicle air conditioning. Products in the following
subsectors within the motor vehicle air conditioning subsector are
subject to the prohibitions in Sec.  84.54(c), (d), (e), and (f), when
using a regulated substance or a blend containing a regulated substance
with a global warming potential of 150 or greater:
    (1) Light-duty passenger cars;
    (2) Light-duty trucks;
    (3) Medium-duty passenger vehicles;
    (4) Heavy-duty pickup trucks;
    (5) Complete heavy-duty vans; and
    (6) Certain nonroad vehicles (i.e., agricultural tractors greater
than 40 horsepower; self-propelled agricultural machinery; compact
equipment; construction, forestry, and mining equipment; and commercial
utility vehicles only).
    (c) Foam blowing. Products in the following subsectors within the
foam blowing sector are subject to the prohibitions in Sec.  84.54(a)
and (b), when using a regulated substance or a blend containing a
regulated substance with a global warming potential of 150 or greater:
    (1) Phenolic insulation board and bunstock;
    (2) Polystyrene--extruded boardstock and billet;
    (3) Rigid polyurethane--appliance foam;
    (4) Rigid polyurethane--slabstock and other;
    (5) Rigid polyurethane--commercial refrigeration;
    (6) Rigid polyurethane--sandwich panels;
    (7) Rigid polyurethane--marine flotation foam; and
    (8) Spray foam (i.e., rigid polyurethane high-pressure two-
component, rigid polyurethane low-pressure two-component, and rigid
polyurethane one-component foam sealants).
    (i) Spray foam when used for space vehicles as defined in Sec.
84.3 is excluded from this prohibition.
    (ii) [Reserved]
    (d) Aerosols. Products in the aerosol sector are subject to the
prohibitions in Sec.  84.54(a) and (b), when using a regulated
substance or a blend containing a regulated substance with a global
warming potential of 150 or greater.
    (e) Full restrictions on the use of regulated substances. Products
in the following subsectors within the foam blowing sector are subject
to the prohibitions in Sec.  84.54(a) and (b), when using a regulated
substance or a blend containing a regulated substance:
    (1) Flexible polyurethane;
    (2) Integral skin polyurethane;
    (3) Polyolefin;
    (4) Polystyrene--extruded sheet; and
    (5) Rigid polyurethane and polyisocyanurate laminated boardstock.

Sec.  84.58   Exemptions.

    The regulations under this subpart do not apply to:
    (a) Equipment in existence prior to December 27, 2020; and
    (b) Any product using a regulated substance or a blend containing a
regulated substance, or intended to use a regulated substance or a
blend containing a regulated substance, in an application listed at
Sec.  84.13(a), for a year or years for which that application receives
an application-specific allowance as defined at Sec.  84.3.

Sec.  84.60  Labeling.

    (a) Any regulated product within a sector or subsector listed in
Sec.  84.56 that is imported, sold, distributed, offered for sale or
distribution, or made available for sale must have a permanent label
compliant with paragraph (b) stating:
    (1) The chemical name(s) or American Society of Heating,
Refrigerating and Air-Conditioning Engineers designation of the
regulated substance(s) or blend containing a regulated substance;
    (2) The global warming potential of the regulated substance or
blend containing a regulated substance according to Sec.  84.66,
labeled as ``global warming potential'';
    (3) The full date, or at minimum the four-digit year, of
manufacture. For field charged equipment, this shall be the date of
first charge and be completed at first charge.
    (4) An indication that the full refrigerant charge is either
greater than two hundred pounds or less than two hundred pounds for
products in the following subsectors:
    (i) Industrial process refrigeration;
    (ii) Retail food refrigeration--supermarket systems;
    (iii) Retail food refrigeration--remote condensing units; and

    (iv) Cold storage warehouses.
    (5) An indication that the full refrigerant charge is either
greater than 500 grams or is equal to or less than 500 grams for
products in the following subsector:
    (i) Automatic commercial ice machines--standalone.
    (ii) [Reserved]
    (b) The permanent label must be:
    (1) In English;
    (2) Durable and printed or otherwise labeled on, or affixed to, an
external surface of the product;
    (3) Readily visible and legible;
    (4) Able to withstand open weather exposure without a substantial
reduction in visibility or legibility; and
    (5) Displayed on a background of contrasting color.
    (c) For products sold or distributed, offered for sale or
distribution, or made available electronically through online commerce,
the label must be readily visible and legible in either photographs of
the products, photographs of packaging materials that contain the
required information, or an item description that contains the required
information.
    (d) Any regulated product lacking a label will be presumed to use a
regulated substance with a global warming potential that exceeds the
limit in Sec.  84.56.

Sec.  84.62  Recordkeeping and reporting.

    (a) Reporting. (1) Any person, with the exception of persons in
(a)(3), who imports or manufactures a product that uses or is intended
to use a regulated substance or blend containing a regulated substance,
must comply with the following recordkeeping and reporting
requirements:
    (i) Reports must be submitted quarterly to EPA within 45 days of
the end of the applicable reporting period;
    (ii) Reports, petitions, and any related supporting documents must
be submitted electronically in a format specified by EPA;
    (iii) Each report shall be signed and attested by a responsible
officer;
    (iv) Each report must provide a statement of certification that the
data are accurate, the products use only allowed regulated substances
and are properly labeled.
    (2) Reports provided to EPA must include the following information:
    (i) The sector and subsector of the product based on the
categorization in Sec.  84.56;
    (ii) For each type of factory-charged equipment with a unique
combination of charge size and regulated substance or blend containing
a regulated substance, the identity of the regulated substance or blend
containing a regulated substance and its global warming potential
according to Sec.  84.66, charge size (holding charge, if applicable),
and number of units imported or domestically manufactured;
    (iii) For each type of dry shipped equipment with a unique
combination of intended charge size and intended regulated substance or
blend containing a regulated substance, the identity of the intended
regulated substance or blend containing a regulated substance and its
global warming potential according to Sec.  84.66, charge size, and
number of units imported or domestically manufactured;
    (iv) Total mass in metric tons of each regulated substance or blend
containing a regulated substance imported or domestically manufactured
in factory-charged equipment pursuant to this paragraph (a)(2); and the
mass of the regulated substance or blend containing a regulated
substance per unit of equipment type.
    (v) Dates on which the products were imported or domestically
manufactured.
    (3) Persons that field-charge equipment in order to complete the
manufacture of a product are not subject to the reporting provision in
paragraph (a)(1) of this section.
    (4) Any failure by an importer or domestic manufacturer of a
product that uses or is intended to use a regulated substance or a
blend containing a regulated substance to report required information
or provide accurate information pursuant to this section shall be
considered a violation of this section.
    (b) Recordkeeping. (1) Each importer or domestic manufacturer of a
product that uses or is intended to use a regulated substance or blend
containing a regulated substance must retain the following records for
a minimum of three years and make them available to EPA upon request:
    (i) Records that form the basis of the reports outlined in
paragraph (a)(2) of this section; and
    (ii) The company or retailer to whom the regulated products were
sold, distributed, or in any way conveyed to.
    (2) In addition to the records in paragraph (b)(1) of this section,
importers of products containing a regulated substance or a blend
containing a regulated substance must retain the following records for
each import:
    (i) A copy of the bill of lading;
    (ii) The invoice;
    (iii) The U.S. Customs and Border Protection entry documentation;
    (iv) Port of entry through which the products passed;
    (v) Country of origin and if different the country of shipment to
the United States.
    (3) Persons that field charge equipment in order to complete the
manufacture of a product are not subject to the recordkeeping provision
in paragraph (b)(1) of this section.

Sec.  84.64  Technology transitions petition requirements.

    (a) Required elements. Each petition sent to the Administrator
under subsection (i) of the AIM Act shall include the following
elements:
    (1) Identification of the sector or subsector. Petitioners must
identify the sector(s) or subsector(s) for which restrictions on use of
the regulated substance would apply.
    (2) Identification of restriction on the use of a regulated
substance. For each sector or subsector identified in a petition,
petitioners must identify the restriction on the use of a regulated
substance through either of the following:
    (i) A global warming potential limit that will apply to regulated
substances or blends containing regulated substances with global
warming potentials at or above that limit.
    (ii) Identification of the regulated substance or blend containing
regulated substance to be restricted and its global warming potential
according to Sec.  84.66.
    (3) Identification of effective date. For each restriction on the
use of a regulated substance contained in petitions, petitioners must
include an effective date on which the regulated substance use
restriction would commence, or state that the effective date should be
one year after promulgation of the rule. Petitioners should provide
information supporting the identified effective date.
    (4) Statement on the use of negotiated rulemaking. Petitioners must
include a request that the Administrator negotiate with stakeholders in
accordance with the negotiated rulemaking procedure provided for under
subchapter III of chapter 5 of title 5, United States Code. Petitioners
must include an explanation of their position to support or oppose the
use of the negotiated rulemaking procedure.
    (5) Information supporting the requested restriction. For each
requested restriction, to the extent practicable, petitioners must
provide information related to the considerations provided in AIM Act
subsection (i)(4) to facilitate the Agency's review of the petition.
    (b) Submission of petitions. Any petition submitted to the
Administrator must be submitted electronically using the designated
email address listed on

the EPA Technology Transitions website.

Sec.  84.66  Global warming potentials.

    (a) Regulated substances. The global warming potential of a
regulated substance is the exchange value for the regulated substance
listed in subsection (c) of the AIM Act and in appendix A to this part
84.
    (b) Blends containing a regulated substance. For blends containing
a regulated substance, the global warming potential of the blend is the
sum of the global warming potentials of each constituent of the blend
multiplied by that constituent's nominal mass fraction within the
blend. The global warming potential of each constituent shall be as
follows:
    (1) For each constituent within the blend that is a regulated
substance, the global warming potential shall be as provided in Sec.
84.66(a);
    (2) Where trans-dichloroethylene, also referred to as HCO-1130(E),
is a constituent of the blend, the global warming potential of this
constituent shall be one;
    (3) Where cis-1-chloro-2,3,3,3-tetrafluoropropene, also referred to
as HCFO-1224yd(Z), is a constituent of the blend, the global warming
potential of this constituent shall be five;
    (4) For each constituent that is not a regulated substance, is not
HCO-1130(E), is not HCFO-1224yd(Z), but does have a global warming
potential listed in the Fourth Assessment Report of the
Intergovernmental Panel on Climate Change, the global warming potential
of the constituent shall be that listed as the 100-year integrated
global warming potential and shall be the net global warming potential;
    (5) For each constituent that is not a regulated substance, is not
HCO-1130(E), is not HCFO-1224yd(Z), and is not listed in the Fourth
Assessment Report of the Intergovernmental Panel on Climate Change, the
global warming potential of the constituent shall be that listed as the
100-year integrated global warming potential in the 2018 report by the
World Meteorological Organization, titled ``Scientific Assessment of
Ozone Depletion: 2018'';
    (6) For each constituent that is not a regulated substance, is not
HCO-1130(E), is not HCFO-1224yd(Z), is not listed in the Fourth
Assessment Report of the Intergovernmental Panel on Climate Change, and
is not listed in the 2018 report by the World Meteorological
Organization, the global warming potential of the constituent shall be
that listed in Table A-1 to 40 CFR part 98, as it existed on December
15, 2022, including the use of default global warming potential values
for constituents that are not specifically listed in that table;
    (7) For cases in (4) through (6) above where a qualifier, including
but not limited to approximately, ~, less than, <, much less than, <<,
greater than, and >, is provided with a global warming potential value,
the value shown shall be the global warming potential of the
constituent without consideration of the qualifier; (8) For
constituents that do not have a global warming potential as provided in
paragraphs (b)(1) through (b)(7) of this section, the global warming
potential of the constituent shall be zero.

[FR Doc. 2022-26981 Filed 12-12-22; 8:45 am]
BILLING CODE 6560-50-P