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B-335463 Aug 02, 2023 1 (2023-08-02)

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                     U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


B-335463


August 2, 2023

The Honorable Thomas  R. Carper
Chairman
The Honorable Shelley Moore Capito
Ranking Member
Committee on Environment and Public Works
United States Senate

The Honorable Cathy McMorris Rodgers
Chair
The Honorable Frank Pallone, Jr.
Ranking Member
Committee on Energy and Commerce
House  of Representatives

Subject: Environmental Protection Agency: Phasedown of Hydrofluorocarbons: Allowance
        Allocation Methodology for 2024 and Later Years

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major
rule promulgated by the Environmental Protection Agency (EPA) entitled Phasedown of
Hydrofluorocarbons: Allowance Allocation Methodology for 2024 and Later Years
(RIN: 2060-AV45). We  received the rule on July 10, 2023. It was published in the
Federal Register as a final rule on July 20, 2023. 88 Fed. Reg. 46836. The effective date is
September  18, 2023, except for amendatory instructions 3 and 13, which are effective
October 1, 2024.

The final rule, according to EPA, implements certain provisions of the American Innovation and
Manufacturing Act of 2020. Pub. L. No. 116-260, div. S, § 103, 134 Stat. 1182, 2255
(Dec. 27, 2020). EPA stated the rule establishes the methodology for allocating
hydrofluorocarbon production and consumption allowances for the calendar years of 2024
through 2028. Also, according to EPA, the rule amends the consumption baseline to reflect
updated data and to make other adjustments based on lessons learned from implementation of
the Hydrofluorocarbon Phasedown Program thus far, including to: codify the existing approach
of how allowances must be expended for import of regulated substances, revise recordkeeping
and reporting requirements, and implement other modifications to the existing regulations.

Enclosed is our assessment of EPA's compliance with the procedural steps required by
section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any questions
about this report or wish to contact GAO officials responsible for the evaluation work relating to

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