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D.C. Circuit Rejects EPA's Efforts to Ban

Hydrofluorocarbons: Part 2



September 5, 2017
This Sidebar is the second in a series of two posts analyzing the U.S. Court of Appeals for the District of
Columbia Circuit's (D. C. Circuit's) decision in Mexichem Fluor, Inc. v. EPA, vacatingpart of a 2015
rule that would have banned uses of hydrofluorocarbons (HFCs), a class of greenhouse gases
(GHGs). Part ! of this series provided background on the U.S. implementation of the Montreal Protocol
on Substances that Deplete the Ozone Layer (Montreal Protocol) and analyzed the court's opinion. Part 2
of this series discusses the potential implications of the court's decision on further regulation of the HFCs
and impacts on the United States implementation of the Montreal Protocol and its amendments.

Alternative Legal Options for Reducing HFCs
Although the majority decision in Mexichem Fluor, Inc. v. EPA held that EPA could not require
manufacturers that previously replaced ODSs with HFCs to replace those HFCs with another acceptable
substitute, the majority did provide potential alternative pathways for EPA to regulate HFCs. The majority
anticipated that EPA might argue that the agency can retroactively determine that the HFCs should not
have been approved as acceptable ODS substitutes under Section 612 in the first place, thus prohibiting
manufacturers from continuing to use HFCs as an ODS substitute in their products. However, the majority
decision outlined potential legal obstacles, including due process concerns, to this approach should EPA
decide to pursue retroactive disapproval.
The majority also highlighted several statutory authorities under the Clean Air Act that could potentially
be used to regulate HFCs, including the National Ambient Air Quality Standards (NAAQS) (Section
109), Hazardous Air Pollutants (HAPs) program (Section 112), motor vehicle emission standards (Section
202), and the Prevention of Significant Deterioration (PSD) permitting program (Sections 160-169). EPA
has already used some of these authorities to regulate HFCs. For example, EPA has exercised its authority
under Section 202 to reduce the use of HFCs as coolants in automotive air conditioning systems by
allowing manufacturers that substitute HFCs with other coolants with lower GWPs to earn credits that can
be used to comply with the motor vehicle GHG standards. In addition, EPA has exercised its authority
under the PSD program to set emission limits on GHGs (including HFCs) for new or modified stationary
sources that are required to obtain a PSD permit for non-GHG emissions.
To use the other statutory authorities mentioned in the majority decision, EPA would be required to make
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