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May 7, 2020
Hydrofluorocarbons (HFCs): EPA and State Actions
Many fluorinated and chlorinated substances, including
hydrofluorocarbons (HFCs) and chlorofluorocarbons
(CFCs), are potent greenhouse gases (GHGs). Multiple
scientific assessments conclude that anthropogenic GHGs
(e.g., carbon dioxide [C02], HFCs, and CFCs) have been a
major driver of observed climate change since 1950.
Recent legislative proposals-S. 2754, the American
Innovation and Manufacturing Act of 2019, and H.R. 5544,
the American Innovation and Manufacturing Leadership
Act of 2020-would establish a schedule to reduce
domestic HFC production and consumption. S. 2754 and
H.R. 5544 would require implementation by the U.S.
Environmental Protection Agency (EPA) and an 85%
reduction by 2036 compared to a 2011-2013 baseline.
HFCs are used in air conditioning, refrigeration, foam
blowing agents, insulation, and other applications. HFCs
were first manufactured in the context of efforts to reduce
damage to the earth's stratospheric ozone layer.
Stratospheric ozone absorbs harmful incoming solar
radiation, and it also affects the earth's climate. HFCs are
referred to as substitute refrigerants under Clean Air Act
(CAA) Title VI regulations, because EPA approved HFCs
as replacements for CFCs and other more potent ozone
depleting substances (ODS).
Title VI of the CAA represents the United States' primary
response domestically to abate stratospheric ozone
depletion caused by manufactured chemicals. Title VI
contains a phase-out schedule for ODS as well as several
implementing strategies to avoid releases of ODS to the
atmosphere, such as an allowance trading program;
requirements for labeling, recovery, and recycling of ODS;
a program to approve safer substitutes for ODS; and
certification requirements for technicians who service
equipment containing ODS.
To address HFC emissions and their projected effect on
climate change, EPA promulgated changes to the regulatory
requirements for HFCs under Title VI of the CAA. The
2015 and 2016 rulemakings, discussed further below, have
been subject to legal challenges to EPA's authority to
regulate HFCs under CAA Title VI. (For more about EPA's
authority to regulate HFCs, see CRS Legal Sidebar
LSB 10155, D.C. Circuit Rejects EPA 's Efforts to Ban
Hydrofluorocarbons: Part 2.)
Title VI also implements U.S. international responsibilities
under the Montreal Protocol on Substances that Deplete the
Ozone Layer (and its amendments). International
cooperation to phase down CFCs and other ODS has been
effective under the Montreal Protocol. Given the global
nature of HFCs and other GHGs emissions, efforts to
effectively address climate change will likely need to occur
on a global scale. In 2016, nearly 200 nations, including the
United States, agreed to the Kigali Amendment to the
Montreal Protocol, which contains commitments to phase
down global production and consumption of HFCs because
they are potent GHGs that substitute for ODS controlled
under the protocol. The United States is a party to the
Montreal Protocol. As of May 2020, the United States is not
party to the Kigali Amendment.
Absent mitigation actions, global HFC emissions and
consumption are projected to increase, especially in
developing countries as demand is expected to rise for
cooling services that would use HFCs. In developed
countries, projected emissions increases are driven
primarily by the aging and replacement of existing ODS -
using equipment (EPA, Global Non-CO2 GHG Emission
Projections and Mitigation, 2015-2050, 2019). Several
means can reduce HFC production and consumption. These
include conserving and recycling HFCs, substituting other
substances (e.g., ammonia or C02) that are less potent
GHGs than HFCs, and modifying the technologies that use
HFCs, including greater energy efficiency. (For more about
energy efficiency standards, see CRS In Focus IF11354,
Department of Energy Appliance and Equipment Standards
Program.)
Many industry groups and environmental NGOs support
U.S. ratification of the Kigali Amendment, as well as EPA
regulation to assure compliance with it. According to
industry groups that support U.S. ratification of Kigali, a
domestic commitment to phase down HFCs would allow
chemical manufacturers to remain competitive in
international markets, which have begun transitioning to
new refrigerant technologies under the treaty. Some
stakeholders oppose U.S. ratification of Kigali, citing
concerns about consumer costs, such as those from
maintaining or purchasing new air conditioners, or potential
unavailability of substitutes. (See CRS In Focus IF10904,
Potential Hydrofluorocarbon Phase Down: Issues for
Congress.) Others' concerns include use of the Montreal
Protocol to address GHGs and limits on U.S. sovereignty of
any treaty.
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CAA Section 612 authorized EPA to establish Significant
New Alternatives Policy (SNAP), a program to approve
safer substitutes for ODS. Under SNAP, EPA evaluates
alternatives to ODS production and use, creating lists of
acceptable and unacceptable substitutes. CAA Section
612(c) directs EPA to consider if the substitute reduces the
overall risk to human health and the environment and is
currently or potentially available. EPA makes this
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