Phasedown of Hydrofluorocarbons: Technology Transitions Program Residential and Light Commercial Air Conditioning and Heat Pump Subsector, 88825-88832 [2023-28500]
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Federal Register / Vol. 88, No. 246 / Tuesday, December 26, 2023 / Rules and Regulations
to 5 U.S.C. 552a(k)(6): 5 U.S.C.
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and (4), 5 U.S.C. 552a(e)(1), 5 U.S.C.
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including subsection 762.2,
Undeliverable Domestic Mail Bearing
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We will publish an appropriate
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Ryan Law,
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Accordingly, 39 CFR part 111 is
amended as follows:
[FR Doc. 2023–27299 Filed 12–22–23; 8:45 am]
BILLING CODE 4810–AK–P
Authority: 5 U.S.C. 552(a); 13 U.S.C. 301–
307; 18 U.S.C. 1692–1737; 39 U.S.C. 101,
401–404, 414, 416, 3001–3018, 3201–3220,
3401–3406, 3621, 3622, 3626, 3629, 3631–
3633, 3641, 3681–3685, and 5001.
Use of Foreign Return Addresses on
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■
Postal ServiceTM.
ACTION: Final rule.
AGENCY:
The Postal Service is
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DATES: Effective date: January 1, 2024.
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SUPPLEMENTARY INFORMATION: On
November 6, 2023, the Postal Service
published a notice of proposed
rulemaking (88 FR 76162–76163) to
further amend subsections 602.1.5.4 and
609.4.3 to clarify the procedures
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The Postal Service is revising DMM
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clarify that undeliverable domestic
mailpieces with a foreign return address
will be handled in accordance with the
Postal Service’s dead mail procedures.
In a separate rule, the Postal Service
will also revise a few related sections of
the International Mail Manual (IMM)
SUMMARY:
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PART 111—GENERAL INFORMATION
ON POSTAL SERVICE
1. The authority citation for 39 CFR
part 111 continues to read as follows:
39 CFR Part 111
15:31 Dec 22, 2023
Administrative practice and
procedure, Postal Service.
609 Filing Indemnity Claims for Loss
or Damage
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4.0
Claims
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*
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*
*
4.3
Nonpayable Claims
Indemnity is not paid for insured mail
(including Priority Mail Express and
Priority Mail), Registered Mail, COD, or
Priority Mail and Priority Mail Express
in these situations:
*
*
*
*
*
[Revise the text of 4.3 by adding a new
item ‘‘ag’’ to read as follows:]
ag. An undeliverable, registered or
insured domestic mailpiece bearing a
foreign return address.
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Sarah Sullivan,
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[FR Doc. 2023–27975 Filed 12–22–23; 8:45 am]
BILLING CODE 7710–12–P
■
POSTAL SERVICE
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ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 84
[EPA–HQ–OAR–2021–0643; FRL–11594–02–
OAR]
Mailing Standards of the United States
Postal Service, Domestic Mail Manual
(DMM)
Phasedown of Hydrofluorocarbons:
Technology Transitions Program
Residential and Light Commercial Air
Conditioning and Heat Pump
Subsector
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AGENCY:
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600 Basic Standards for All Mailing
Services
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602
Addressing
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1.0
Elements of Addressing
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1.5
Return Addresses
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[Revise the heading of 1.5.4 to read as
follows:]
Use of Foreign Return Addresses
[Revise the text of 1.5.4 to read as
follows:]
When U.S. postage is applied to a
domestic mailpiece, as defined under
608.2.1 and 608.2.2, only a domestic
return address is authorized. An
undeliverable domestic mailpiece
bearing a foreign return address cannot
be returned to sender and will be
handled as dead mail under 507.1.9.
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The U.S. Environmental
Protection Agency is amending a
provision of the recently finalized
Technology Transitions Program under
the American Innovation and
Manufacturing Act (AIM Act). This
action allows one additional year, until
January 1, 2026, solely for the
installation of new residential and light
commercial air conditioning and heat
pump systems using components
manufactured or imported prior to
January 1, 2025. The existing January 1,
2025, compliance date for the
installation of certain residential and
light commercial air conditioning and
heat pump systems may result in
significant stranded inventory that was
intended for new residential
construction. EPA is promulgating this
action to mitigate the potential for
significant stranded inventory in this
subsector. In addition, EPA is clarifying
SUMMARY:
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1.5.4
Environmental Protection
Agency (EPA).
ACTION: Interim final rule and request
for comments.
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Federal Register / Vol. 88, No. 246 / Tuesday, December 26, 2023 / Rules and Regulations
that residential ice makers are not
included in the household refrigerator
and freezer subsector under the
Technology Transitions Rule and are
not subject to the restrictions for that
subsector. EPA is requesting comments
on all aspects of this rule.
DATES: This interim final rule is
effective on December 26, 2023.
Comments on this rule must be received
on or before February 9, 2024.
ADDRESSES: You may send comments,
identified by docket identification
number EPA–HQ–OAR–2021–0643, by
any of the following methods:
• Federal eRulemaking Portal:
https://www.regulations.gov (our
preferred method). Follow the online
instructions for submitting comments.
• Mail: U.S. Environmental
Protection Agency, EPA Docket Center,
Air and Radiation Docket, Mail Code
2822T, 1200 Pennsylvania Avenue NW,
Washington, DC 20460.
• Hand Delivery or Courier (by
scheduled appointment only): EPA
Docket Center, WJC West Building,
Room 3334, 1301 Constitution Avenue
NW, Washington, DC 20004. The Docket
Center’s hours of operations are 8:30
a.m.–4:30 p.m., Monday–Friday (except
Federal Holidays).
Instructions: All submissions received
must include the Docket ID number for
this rulemaking. Comments received
may be posted without change to
https://www.regulations.gov, including
any personal information provided.
You may find the following
suggestions helpful for preparing your
comments: Direct your comments to
specific sections of this rulemaking and
note where your comments may apply
to future separate actions where
possible; explain your views as clearly
as possible; describe any assumptions
that you used; provide any technical
information or data you used that
support your views; provide specific
examples to illustrate your concerns;
offer alternatives; and, make sure to
submit your comments by the comment
period deadline. Please provide any
published studies or raw data
supporting your position. Multimedia
submissions (audio, video, etc.) must be
accompanied by a written comment.
The written comment is considered the
official comment and should include
discussion of all points you wish to
make. EPA will generally not consider
comments or comment contents located
outside of the primary submission (e.g.,
on the web, cloud, or other file sharing
system).
Do not submit any information you
consider to be Confidential Business
Information (CBI) through https://
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www.regulations.gov. For submission of
confidential comments, please work
with the person listed in the FOR
FURTHER INFORMATION CONTACT section.
For additional submission methods, the
full EPA public comment policy,
information about CBI or multimedia
submissions, and general guidance on
making effective comments, please visit
https://www.epa.gov/dockets/
commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT:
Allison Cain, Stratospheric Protection
Division, Office of Atmospheric
Programs (Mail Code 6205A),
Environmental Protection Agency, 1200
Pennsylvania Ave. NW, Washington, DC
20460; telephone number: 202–564–
1566; email address: cain.allison@
epa.gov. You may also visit EPA’s
website at https://www.epa.gov/climatehfcs-reduction for further information.
SUPPLEMENTARY INFORMATION: EPA is
taking this action as an interim final
rule without prior proposal and public
comment because EPA finds that the
good cause exemption from the notice
and comment rulemaking requirement
of the Administrative Procedure Act
(APA), 5 U.S.C. 551 et seq., applies here.
Subsection (k)(1)(C) of the American
Innovation and Manufacturing Act (AIM
Act) provides that Clean Air Act (CAA)
sections 113, 114, 304, and 307 apply to
the AIM Act and any regulations EPA
promulgates under the AIM Act as
though the AIM Act were part of title VI
of the CAA. However, section 307(d)
does not apply to any rule referred to in
subparagraphs (A) or (B) of section
553(b) of the APA. See CAA section
307(d)(1). Section 553(b)(B) of the APA,
5 U.S.C. 553(b)(B), provides that, when
an agency for good cause finds (and
incorporates the finding and a brief
statement of reasons therefor in the rule
issued) that notice and comment public
procedures are impracticable,
unnecessary or contrary to the public
interest, the agency may issue a rule
without providing notice and an
opportunity for public comment.
EPA has determined there is good
cause for promulgating this rule without
prior proposal and opportunity for
comment. After signature of EPA’s
October 2023 final rule that established,
among other things, a prohibition
beginning on January 1, 2025, of the
installation of new residential and light
commercial air conditioning and heat
pump systems using regulated
substances with a global warming
potential of 700 or more, stakeholders
brought to the Agency’s attention that
builders order equipment in this
subsector well in advance of
installation, often even before the
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installation date is known, and that the
final rule’s compliance date would
potentially strand a significant amount
of inventory. EPA is issuing this rule to
address these concerns and to mitigate
the harm that would be caused by
unintentionally stranding inventory as a
result of the January 1, 2025,
compliance date for the installation of
certain air conditioning and heat pump
systems. Subsection (i)(6) of the AIM
Act states that ‘‘[n]o rule under this
subsection may take effect before the
date that is 1 year after the date on
which the Administrator promulgates
the applicable rule under this
subsection.’’ In order to provide relief
for entities subject to the January 1,
2025, compliance date, and in light of
subsection (i)(6)’s one-year delay
between promulgation and compliance
date, EPA is taking this rulemaking
action prior to January 1, 2024, one year
in advance of the existing compliance
date. It is impossible for the Agency to
conclude a notice-and-comment
rulemaking to provide this needed relief
by January 1, 2024, and therefore EPA
finds that this impracticability
constitutes good cause for dispensing
with the required procedures under 5
U.S.C. 553(b)(B). Nonetheless, EPA is
providing 45 days for submission of
public comments following today’s
action. EPA will consider all written
comments submitted in the allotted time
period to determine if any change is
warranted. Because the rule revisions
relieve a restriction and advance notice
is not needed, the rule is effective upon
publication.
Throughout this document, whenever
‘‘we,’’ ‘‘us,’’ ‘‘the Agency,’’ or ‘‘our’’ is
used, we mean EPA. Acronyms that are
used in this rulemaking that may be
helpful include:
AC—Air Conditioning
AHRI—Air-Conditioning, Heating, and
Refrigeration Institute
AIM Act—American Innovation and
Manufacturing Act of 2020
APA—Administrative Procedure Act
CAA—Clean Air Act
EPA—U.S. Environmental Protection Agency
FR—Federal Register
HARDI—Heating, Air-conditioning &
Refrigeration Distributors International
HFC—Hydrofluorocarbon
OEM—Original Equipment Manufacturer
SNAP—Significant New Alternatives Policy
VRF—Variable Refrigerant Flow
I. Executive Summary
A. What is the purpose of this regulatory
action?
The U.S. Environmental Protection
Agency (EPA) is implementing
provisions of the American Innovation
and Manufacturing Act of 2020, codified
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at 42 U.S.C. 7675 (AIM Act or the Act).
Subsection (i) of the Act, entitled
‘‘Technology Transitions,’’ authorizes
EPA, by rulemaking, to restrict the use
of regulated substances (used
interchangeably with ‘‘HFCs’’ in this
document) 1 in sectors or subsectors
where the regulated substances are
used.
On October 24, 2023, EPA’s final rule
establishing the Technology Transitions
Program was published in the Federal
Register (88 FR 73098, hereafter
‘‘Technology Transitions Rule’’). That
rule restricted the use of higher-GWP
HFCs in over 40 subsectors in which
they are used. It also prohibited, among
other things, the manufacture and
import of factory-completed products
and the installation of certain
refrigeration, air conditioning, and heat
pump systems using higher-GWP HFCs.
The compliance dates for these
restrictions vary by subsector and range
from January 1, 2025, to January 1, 2028.
The rule also prohibited the sale,
distribution, and export of factorycompleted products that do not comply
with the relevant restrictions three years
after the prohibition on manufacture
and import.
After issuance of the Technology
Transitions Rule, manufacturers,
importers, and distributors of residential
and light commercial air conditioning
and heat pump equipment informed
EPA that the compliance date for the
restriction on installation will result in
substantial stranded inventory in that
subsector for residential new
construction, including both singlefamily and multi-family dwellings,
where builders order heating and
cooling equipment well in advance of
knowing the exact date of installation.
This rule narrowly addresses the unique
circumstances of that particular
subsector to prevent such equipment
from being stranded.
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B. What is the summary of this
regulatory action?
This interim final rulemaking
provides one additional year for the
installation of new residential and light
commercial air conditioning and heat
pump systems when using components
that were manufactured or imported
before January 1, 2025. Specifically, this
rule allows for pre-2025 condensing
units, evaporators, and air handlers
using R–410A, or other regulated
substances and blends of regulated
substances not meeting the Technology
1 The Act lists 18 saturated HFCs, and by
reference any of their isomers not so listed, that are
covered by the statute’s provisions, referred to as
‘‘regulated substances’’ under the Act.
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Transitions Rule’s restrictions, to be
assembled into new systems (i.e.,
installed), so long as those systems are
assembled prior to January 1, 2026.
We also clarify that residential ice
makers are not included in the
household refrigerator and freezer
subsector and are not subject to the
restrictions for that subsector under the
Technology Transitions Rule. The
preamble to the Technology Transitions
Rule incorrectly included them as an
example of a product in that subsector.
C. What is the summary of the costs and
benefits?
This rule will reduce regulatory
burden associated with the Technology
Transitions Program while having a
negligible environmental impact.
Original equipment manufacturers
(OEMs) have indicated that collectively,
over $1 billion of inventory could go
unsold without an extension of the
installation date. Stranding significant
amounts of equipment that does not
meet the new restrictions is counter to
the overall approach EPA has taken in
the Technology Transitions Rule.
Extending the installation date for these
systems will not have an impact on the
benefits modeled in the Technology
Transitions Rule because EPA is
limiting the extension to equipment
manufactured or imported before the
existing compliance date of January 1,
2025.
II. General Information
A. Does this action apply to me?
You may be potentially affected by
this rule if you manufacture, import,
export, sell or otherwise distribute, or
install residential and light commercial
air conditioning and heat pump
equipment. Potentially affected
categories, by North American Industry
Classification System code, include:
• Plumbing, Heating, and Air
Conditioning Contractors (238220)
• Air Conditioning and Warm Air
Heating Equipment and Commercial
and Industrial Refrigeration
Equipment Manufacturing (333415)
• Major Household Appliance
Manufacturing (335220)
• Household Appliances, Electric
Housewares, and Consumer
Electronics Merchant Wholesalers
(423620)
• Plumbing and Heating Equipment and
Supplies (Hydronics) Merchant
Wholesalers (423720)
• Warm Air Heating and Air
Conditioning Equipment and
Supplies Merchant Wholesalers
(423730)
• Appliance Stores, Household-Type
(449210)
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• Appliance Repair and Maintenance
(811412)
This list is not intended to be
exhaustive, but rather provides a guide
for readers regarding entities that EPA
expects could potentially be affected by
this action. Other types of entities not
listed could also be affected. To
determine whether your entity may be
affected by this action, you should
carefully examine the regulatory text at
the end of this notice. If you have
questions regarding the applicability of
this action to a particular entity, consult
the person listed in the FOR FURTHER
INFORMATION CONTACT section.
B. What is EPA’s authority for taking
this action?
On December 27, 2020, the AIM Act
was enacted as section 103 in Division
S, Innovation for the Environment, of
the Consolidated Appropriations Act,
2021 (codified at 42 U.S.C. 7675).
Subsection (k)(1)(A) of the AIM Act
provides EPA with the authority to
promulgate necessary regulations to
carry out EPA’s functions under the Act,
including its obligations to ensure that
the Act’s requirements are satisfied.
Subsection (k)(1)(C) of the AIM Act also
provides that CAA sections 113, 114,
304, and 307 apply to the AIM Act and
any regulations EPA promulgates under
the AIM Act as though the AIM Act
were part of title VI of the CAA.
The AIM Act authorizes EPA to
address HFCs by providing new
authorities in three main areas: phasing
down the production and consumption
of listed HFCs; managing these HFCs
and their substitutes; and facilitating the
transition to next-generation
technologies by restricting use of these
HFCs in the sector or subsectors in
which they are used. This rulemaking
focuses on the third area: the transition
to next-generation technologies by
restricting use of these HFCs in the
sector or subsectors in which they are
used. Subsection (i) of the AIM Act,
‘‘Technology Transitions,’’ provides that
‘‘the Administrator may by rule restrict,
fully, partially, or on a graduated
schedule, the use of a regulated
substance in the sector or subsector in
which the regulated substance is used.’’
42 U.S.C. 7675(i)(1). The Act lists 18
saturated HFCs, and by reference any of
their isomers not so listed, that are
covered by the statute’s provisions,
referred to as ‘‘regulated substances’’
under the Act.2 (42 U.S.C. 7675(c)(1)).
Through this rule, EPA is amending
recently finalized restrictions on the use
2 As noted previously in this notice, ‘‘regulated
substance’’ and ‘‘HFC’’ are used interchangeably in
this notice.
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of certain HFCs in the residential and
light commercial air conditioning and
heat pump subsector.
C. How is EPA considering negotiated
rulemaking?
Prior to proposing a rule, subsection
(i)(2)(A) of the Act directs EPA to
consider negotiating with stakeholders
in the sector or subsector subject to the
potential rule in accordance with
negotiated rulemaking procedures
established under subchapter III of
chapter 5 of title 5, United States Code
(commonly known as the ‘‘Negotiated
Rulemaking Act of 1990’’). If EPA makes
a determination to use the negotiated
rulemaking procedures, subsection
(i)(2)(B) requires that EPA, to the extent
practicable, give priority to completing
that rulemaking over completing
rulemakings under subsection (i) that
are not using that procedure. If EPA
does not use the negotiated rulemaking
process, subsection (i)(2)(C) requires the
Agency to publish an explanation of the
decision not to use that procedure
before commencement of the
rulemaking process.
EPA noted in the final Technology
Transitions Rule that, where
appropriate, EPA will consider recent
Agency actions and decisions related to
restrictions on the use of HFCs in
sectors and subsectors when
considering using negotiated
rulemaking procedures. EPA provided
the example of not issuing a separate
notice to consider using negotiated
rulemaking for four petitions received
after a first round of petitions had
received public notice. EPA’s reasoning
was that these petitions were received
well ahead of the final action and the
requested restrictions are in the same
sectors and subsectors contained in
petitions for which a determination had
already been made. EPA stated that
nothing in those four petitions caused
EPA to reconsider that decision and that
it was unnecessary for the Agency to
reconsider whether to use negotiated
rulemaking procedures.
Upon considering recent Agency
action, specifically the Technology
Transitions Rule, today’s interim final
rulemaking does not merit a
reconsideration of the prior
determination not to use negotiated
rulemaking procedures. This rule is a
direct and immediate response to a
specific concern arising from the recent
agency action to establish a compliance
date for the installation of certain
systems within the residential and light
commercial air conditioning and heat
pump subsector. EPA is not addressing
a new subsector nor even establishing a
new restriction. Instead, this rule
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provides targeted relief to address
concerns about stranded inventory in a
particular subsector subject to a recently
finalized restriction.
Furthermore, this action has been
requested through a November 13, 2023,
letter signed jointly by the AirConditioning, Heating, and Refrigeration
Institute (AHRI), the Alliance for
Responsible Atmospheric Policy (the
Alliance), and Heating, Air-conditioning
& Refrigeration Distributors
International (HARDI), which together
represents a majority of the stakeholders
in the subsector subject to the rule.3
EPA does not believe that the rule
would benefit from the negotiated
rulemaking procedure especially
because timeliness is a concern
universally shared by stakeholders in
this subsector.
III. Final Rule
A. Addressing Stranded Inventory
The November 13, 2023, letter to the
EPA from AHRI, the Alliance, and
HARDI requested clarification of the
provisions of the rule regarding two
categories of equipment: Residential and
Light Commercial Air Conditioning and
Heat Pump Systems and Variable
Refrigerant Flow (VRF) Systems. The
letter states that these organizations
understand that components for systems
in these two categories manufactured or
imported before January 1, 2025, and
January 1, 2026, respectively, using a
regulated substance with a GWP of 700
or more, cannot be installed as new
systems after each such compliance
date. 40 CFR 84.54(a)–(c). They note
that this would be ‘‘particularly
problematic for residential new
construction, including both singlefamily and multi-family dwellings,
where builders order heating and
cooling equipment well in advance of
knowing the exact date of install. Such
equipment is not installed until
construction is nearly complete, but at
time of order builders do not know
when this date will be.’’ The letter
further articulates that allowing the use
of components manufactured or
imported prior to the compliance date to
be installed as part of new systems for
one year after the compliance date
would provide some relief to the
economic and practical burdens.
An important consideration in the
final rule was avoiding the stranding of
inventory of existing equipment. This
includes systems that are already
installed and operating as well as
unsold equipment in the manufacturing
3 This letter can be found in the docket for this
interim final rule at EPA docket number EPA–HQ–
OAR–2021–0643.
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and distribution chain. EPA stated that
‘‘[w]e recognize that the production and
purchase of products or components
that are unable to be sold to consumers
is an economic and environmental
outcome no parties desire, and the
proposed rule’s forward-looking
compliance dates were intended to
allow all parties in the market supply
chain sufficient time to avoid that
outcome.’’ 88 FR 73123. In response to
concerns about stranded inventory
raised during the public comment
period on the proposed rule, EPA made
two significant adjustments in the final
rule.
First, EPA removed the applicability
of the rule’s use restrictions to
components. EPA explained that
components are pieces of equipment
that, unlike factory-completed products,
do not function independently and must
be assembled together in the field in
order to function for its intended
purpose. Components are replaceable
and a faulty component can be swapped
out to avoid replacing an entire system.
Recognizing the ongoing need for
servicing and updating previously
installed systems, EPA allowed for the
continued manufacture, import, sale,
distribution, offer for sale and
distribution, and export of components
that rely on regulated substances, which
would not meet the new restrictions.
Components are therefore not subject to
the restrictions in the Technology
Transitions Rule, except insofar as those
components may not be installed in new
systems on or after the installation
compliance dates.
Second, the rule imposed a date by
which factory-completed products,
more narrowly defined as an item that
is functional upon completion of
manufacturing, could no longer be
distributed, sold, and offered for sale or
distribution, and extended that date in
the final rule. EPA proposed that the
‘‘sell-through’’ limitation for such
products would be one year after the
compliance date for manufacturing and
importing. The Agency received many
comments on this topic, including from
those that considered one year to be
insufficient especially for certain
seasonal products. In the final rule, EPA
provided a sell-through for factorycompleted products for three years after
the manufacture and import compliance
date.
Through these two modifications in
the final rule, EPA believed it had
minimized the potential for stranded
inventory. Specifically, with respect to
components, the Agency’s view was that
there would continue to be a market for
components not meeting the GWP limit
thresholds for new systems, because
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those components could continue to
enter the market to service existing
systems. However, since the rule’s
signature, stakeholders representing the
air conditioning and heat pump
subsector have raised concerns
indicating that certain aspects of the
rule’s compliance date structure may
result in unintended stranded
inventory. EPA has reevaluated the
specific circumstances for residential
and light commercial air conditioning
and heat pumps, and for the reasons
articulated below is extending the
installation compliance date for that
subsector from January 1, 2025, to
January 1, 2026, when using
components that were manufactured or
imported prior to January 1, 2025. In
this interim final rule, the Agency is not
considering the January 1, 2026,
installation compliance date applicable
to VRF systems; however, EPA intends
to consider VRF systems in a separate
notice and comment action.
EPA has evaluated the planning,
purchasing, and installation timeframes
for residential new construction as
referenced in the November 13, 2023,
letter from industry stakeholders. We
recognize that it is common in the
residential new construction industry
for communities and dwellings to be
planned well in advance, including
plans for the heating and cooling
systems intended to be installed in that
new construction. Builders of
residential new construction may order
those planned heating and cooling
systems in concert with the planning
process without knowing when those
systems will be installed. As noted by
stakeholders, installation of these
systems is often one of the final steps in
residential construction. We
acknowledge that it may therefore be the
case that for new residential
construction planned to occur in 2025,
builders may have already taken action
with respect to the heating and cooling
systems that are planned to be installed
in that new construction. Specifically,
for construction occurring during 2025,
components of residential and light
commercial air conditioning and heat
pump systems may have already been
ordered or purchased by builders, such
that leaving the January 1, 2025,
installation compliance date unaltered
could result in builders of new
residential construction being left with
stranded inventory—residential and
light commercial air conditioning and
heat pump components—that could not
be used. In particular, because such
equipment may already be well along
the distribution chain, including in the
possession of the end-user builder, it
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would be challenging to redirect that
equipment to another user who would
be in a different segment of the market,
such as those servicing existing systems.
As discussed, EPA made changes to the
final Technology Transitions Rule
specifically to avoid stranding
inventory, as this outcome is
undesirable economically and
environmentally, and the issue
addressed in this rule was not brought
to the Agency’s attention until after the
final rule was signed. This action’s
extension of the January 1, 2025, new
installation compliance date to January
1, 2026, for components that were
manufactured or imported prior to
January 1, 2025, is intended to avoid
stranding those components in the
distribution chain.
We also acknowledge that some areas
of the residential and light commercial
air conditioning and heat pump
subsector are experiencing rapid
growth. In 2022, sales of heat pumps in
the United States outpaced gas furnaces
for the first time ever, following a 50%
increase from 2015 to 2020. For certain
technologies with extremely limited
historic use in the United States, such
as mini-split and multi-split systems,
the final Technology Transitions Rule’s
continued allowance of high-GWP HFCs
in components for repair and servicing
only may be insufficient to absorb
projected inventory of those
components. Anticipated manufacture
and import of mini-split systems, for
example, is much larger than the stock
of installed systems that are old enough
to need components for repair or
replacement. The nascent and rapid
expansion of certain subsets of the
residential and light commercial air
conditioning and heat pump subsector
therefore further supports the extension
of the January 1, 2025, compliance date
to January 1, 2026, for installation of
components manufactured or imported
prior to January 1, 2025.
B. Limiting the Environmental Impact of
This Action
EPA is narrowly tailoring this rule to
respond to stakeholder concerns about
stranded inventory in this subsector
while maintaining the environmental
benefits of the Technology Transitions
Rule. To do so, EPA is extending the
installation compliance date only for
new systems installed from specified
components (e.g., condensing units and
indoor evaporators) that were
manufactured or imported prior to
January 1, 2025. This restriction means
that the total number of higher-GWP
systems installed in 2024 and 2025
would match what the Agency modeled
for installation in 2024. The extra year
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88829
for installation would not increase
demand for HFCs in this subsector but
rather could shift some of the demand
from 2024 into 2025.
EPA is not extending the original
compliance date for new installations in
this subsector beyond January 1, 2025,
when using components manufactured
or imported on or after January 1, 2025.
These components remain subject to the
original restrictions of the Technology
Transitions Rule. Specifically, if they
contain an HFC with a GWP of 700 or
greater their use is limited to servicing
previously installed systems. As
elaborated on more below, all the
existing labeling, reporting, and
recordkeeping requirements also
continue to apply to components using,
or intended to use, any HFC. Extending
the compliance date for all installations
in the subsector by one year is not
warranted based on EPA’s prior analysis
of the availability of substitutes within
this subsector, as described in the
Technology Transitions Rule and
supporting documents in the docket for
that rule.
EPA finds that this approach
effectively responds to stakeholder
concerns about stranded inventory
while remaining protective of the
environment. This approach was
suggested by industry stakeholders in
their letter dated November 13, 2023,
and it aligns with industry’s plans to
transition in this subsector.
This interim final rule provides an
additional year for installation only if
all ‘‘specified components’’ of that
system are manufactured or imported
prior to January 1, 2025. The term
‘‘specified component’’ is defined under
the Technology Transitions Rule as
‘‘condensing units, condensers,
compressors, evaporator units, and
evaporators.’’ Other components of an
air conditioning or heat pump system
such as valves or refrigerant piping are
not restricted by the Technology
Transitions Rule and can be installed
regardless of manufacture or import
date.
C. How do the labeling, recordkeeping,
and reporting provisions apply?
The Technology Transitions Rule
requires labels on products and certain
components that use HFCs. The labeling
requirement takes effect for each
subsector at the same time as the
manufacture and import prohibition for
products or the installation prohibition
for systems. This timing reflects the
primary purpose of the labels, which is
for assessing compliance of products
and systems in sectors and subsectors
with active HFC restrictions.
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Federal Register / Vol. 88, No. 246 / Tuesday, December 26, 2023 / Rules and Regulations
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This action does not require any
specific labeling for components that are
manufactured or imported prior to
January 1, 2025. Nameplates typically
include the date that a component is
manufactured, which is sufficient for
the purposes of this rule. Furthermore,
it would be impractical to require
entities that are not OEMs to relabel
components that are already within the
distribution chain.
This action does not change the
existing labeling requirements related to
components that are effective January 1,
2025. For specified components of
systems, the Technology Transitions
Rule required labels as of the applicable
installation compliance date. This
means that for specified components
manufactured or imported on or after
January 1, 2025, the final Technology
Transition Rule’s requirements continue
to apply. These requirements include,
among other things, that such
components must be labeled with the
statement ‘‘For servicing existing
equipment only.’’ This labeling is
particularly important to distinguish
components manufactured or imported
before January 1, 2025, from those that
are not.
The Technology Transitions Rule
established recordkeeping and reporting
requirements for any entity that
manufactures or imports products or
specified components that use or are
intended to use HFCs in the sectors and
subsectors covered in that rule. The
reporting period for all sectors and
subsectors starts on January 1, 2025, and
the first reports must be submitted to
the Agency by March 31, 2026.
This action does not add to nor
modify the existing reporting and
recordkeeping requirements for
specified components. EPA is not
establishing new reporting and
recordkeeping requirements related to
the sale or installation of components
manufactured or imported prior to
January 1, 2025. Reporting and
recordkeeping is still required for
specified components that are
manufactured or imported on or after
January 1, 2025.
D. Evaluation of the Subsection (i)(4)
Factors
Subsection (i)(4) of the AIM Act
directs EPA to factor in, to the extent
practicable and using best available
data, various considerations when
carrying out a rulemaking under
subsection (i). As discussed in detail in
the preamble to the final Technology
Transitions Rule, EPA views subsection
(i)(4)(A) through (D) as providing
overarching direction for setting
restrictions under subsection (i). 88 FR
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15:31 Dec 22, 2023
Jkt 262001
at 73129–73141. EPA is not in this rule
reconsidering the interpretations
provided in the final Technology
Transitions Rule regarding how it
considers the factors laid out in
subsection (i)(4). Nor is the Agency
revisiting its analysis of the (i)(4) factors
with respect to the residential and light
commercial air conditioning and heat
pump subsector as set forth in the final
rule preamble. 88 FR 73177–73180.
However, in issuing this narrow
adjustment to the January 1, 2025,
compliance date for the residential and
light commercial air conditioning and
heat pump subsector, we have
considered the (i)(4) factors to the extent
practicable, as applicable to the
Agency’s adjustment of that compliance
date.
The issue being addressed by this
interim final rule was brought to the
Agency’s attention by stakeholders
impacted by the Technology Transitions
Rule. As noted in EPA’s discussion of
subsection (i)(4)(A), in addition to
information generated by other
governing bodies and agencies, the
Agency does also take into account
information provided by industry,
environmental organizations, trade
associations, and academia, to name a
few. See 88 FR 73129. We acknowledge
that in some cases, regulated entities
may be best situated to identify best
available information regarding
implementation challenges. We are as
part of this action providing an
opportunity for comment and invite
stakeholders who may have information
relevant to this action to weigh in.
With respect to the Agency’s
evaluation of the availability of
substitutes under subsection (i)(4)(B),
EPA previously determined that
substitutes with a GWP less than 700 are
available effective January 1, 2025, for
the residential and light commercial air
conditioning and heat pump subsector.
EPA has not changed that determination
and continues to find that substitutes
with a GWP less than 700 will be
available January 1, 2025, across this
subsector. Manufacturers and importers
in this subsector are currently making
air conditioning and heat pump systems
and components with lower-GWP
refrigerants for other markets and are
prepared to meet the January 1, 2025,
installation compliance date for such
systems. This action is not
reconsidering the Agency’s prior
evaluation of the availability of
substitutes for meeting the use
restrictions issued in the final
Technology Transitions Rule for this
subsector; rather, this action is narrowly
tailored to address the disposition of
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Fmt 4700
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components manufactured or imported
prior to January 1, 2025.
EPA’s action to adjust the installation
compliance date for certain installations
within this subsector is motivated in
large part by the policy goal of avoiding
stranding inventory where possible. We
believe this goal to be consistent with
the direction in subsection (i)(4)(C),
which instructs the Agency to factor in,
to the extent practicable, overall
economic costs and environmental
impacts, as compared to historical
trends. As discussed in the Technology
Transitions Rule, EPA interprets
(i)(4)(C) as purposefully accommodating
different types and degrees of analysis
of economic costs and environmental
impacts, including costs and impacts
that may be difficult to quantify. The
narrow adjustment made in this interim
final rule reduces the potential to
unintentionally strand components.
This action will not affect the overall
consumption of HFCs and thus is not
anticipated to have environmental
impacts compared to the recently
finalized Technology Transitions Rule.
Further discussion of environmental
impacts can be found in Section III.B.
EPA requests comment on the
incremental costs and benefits
associated with this action, including
avoiding impacts such as stranded
inventory (e.g., number and type of
units affected) and on the incremental
impacts to regulated entities regarding
compliance (e.g., avoiding redistribution
of equipment, avoiding revisions or new
permits to replace previously secured
building permits).
Finally, subsection (i)(4)(D) directs
the Agency to factor in, to the extent
practicable, the remaining phasedown
period for regulated substances under
the allowance allocation program. The
reduction in the supply of HFCs is an
important factor supporting compliance
dates and GWP limits that are as
stringent as feasible under the analysis
of all the (i)(4) factors. EPA finds that
this rule will not materially affect the
demand for HFCs because it limits
installations to components that were
manufactured or imported prior to
January 1, 2025. The effect of this rule
is to extend the installations that EPA
modeled to occur in 2024 over the twoyear period of 2024 and 2025. EPA does
not anticipate an increase from the total
number of installed systems modeled in
the Technology Transitions Rule’s
Regulatory Impact Assessment
Addendum. Were the Agency to allow
for the installation of new systems using
components manufactured or imported
through January 1, 2026, for instance,
EPA would then find an effect on the
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Federal Register / Vol. 88, No. 246 / Tuesday, December 26, 2023 / Rules and Regulations
A. Executive Order 12866: Regulatory
Planning and Review and Executive
Order 14094: Modernizing Regulatory
Review
number of new systems and increased
demand for HFCs.
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IV. Other Matters
This interim rule is also providing a
clarification regarding the scope of
equipment within the household
refrigerators and freezers subsector. For
the reasons discussed below, household
ice makers are not included within that
subsector for purposes of the
Technology Transitions Rule.
The proposed Technology Transitions
Rule provided a functional description
of the equipment found in each
subsector and a non-exhaustive list of
examples. EPA did not list all of the
applications within a particular
subsector given the variety of equipment
types and end-uses. The proposed rule
listed residential refrigeration systems
as household refrigerators, freezers, and
combination refrigerator/freezers and
described the subsector as follows: ‘‘The
designs and refrigeration capacities of
equipment vary widely. Household
freezers only offer storage space at
freezing temperatures, while household
refrigerators only offer storage space at
non-freezing temperatures. Products
with both a refrigerator and freezer in a
single unit are most common. For
purposes of this proposed rule, other
small refrigerated household appliances
such as chilled kitchen drawers, wine
coolers, and minifridges also fall within
this subsector.’’ 87 FR 76785.
The final rule incorrectly added
‘‘household ice makers’’ to the list of
examples. 88 FR 73173. The functional
description of this subsector in the
Technology Transitions Rule remained
the same between proposal and final
and was equipment that offers storage
space at freezing and non-freezing
temperatures. Residential ice makers
merit additional consideration because
they are primarily designed to produce
the ice in addition to providing storage
for that ice at freezing temperatures. The
types of ice and processes used to make
them may differ from the other
equipment covered by the restrictions
for this subsector and additional
analysis of available substitutes for
household ice makers is warranted. As
such, EPA does not consider residential
ice makers to be within the scope of the
household refrigerators and freezers
subsector or the requirements of the
Technology Transitions Rule.
V. Statutory and Executive Order
Review
Additional information about these
statutes and Executive Orders can be
found at https://www.epa.gov/lawsregulations/laws-and-executive-orders.
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15:31 Dec 22, 2023
Jkt 262001
This action is a ‘‘significant regulatory
action’’ under Executive Order 12866, as
amended by Executive Order 14094.
Nevertheless, the Office of Management
and Budget waived review of this
action. The EPA prepared an analysis of
the potential impacts associated with
this action. This analysis, Regulatory
Impact Analysis of the Proposed Waste
Emission Charge, is available in docket
EPA–HQ–OAR–2023–0434 to this
rulemaking and is briefly summarized
in Section V of this preamble.
B. Paperwork Reduction Act (PRA)
This action does not impose an
information collection burden under the
PRA because it does not contain any
information collection activities.
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. In making this
determination, EPA concludes that the
impact of concern for this rule is any
significant adverse economic impact on
small entities and that the agency is
certifying that this rule will not have a
significant economic impact on a
substantial number of small entities
because the rule relieves regulatory
burden on the small entities subject to
the rule. This rule prevents the
stranding of components used to install
residential and light commercial air
conditioning and heat pump systems.
We have therefore concluded that this
action will relieve regulatory burden for
all directly regulated small entities.
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.
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88831
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.
G. Executive Order 13045: Protection of
Children From Environmental Health
and Safety Risks
EPA interprets Executive Order 13045
as applying only to those regulatory
actions that concern environmental
health or safety risks that EPA has
reason to believe may
disproportionately affect children, per
the definition of ‘‘covered regulatory
action’’ in section 2–202 of the
Executive Order. This action is narrowly
tailored to prevent the stranding of
certain air conditioning and heat pump
equipment while not affecting the
demand for HFCs. Therefore, this action
is not subject to Executive Order 13045
because it does not concern an
environmental health risk or safety risk.
Since this action does not concern
human health, EPA’s Policy on
Children’s Health also does not apply.
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 and Executive
Order 14096: Revitalizing Our Nation’s
Commitment to Environmental Justice
for All
The EPA believes that this type of
action does not concern human health
or environmental conditions and
therefore cannot be evaluated with
respect to potentially disproportionate
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Federal Register / Vol. 88, No. 246 / Tuesday, December 26, 2023 / Rules and Regulations
and adverse effects on communities
with environmental justice concerns.
This action is narrowly tailored to
prevent the stranding of inventory of air
conditioning and heat pump equipment
while not affecting the demand for
HFCs.
Although this action does not concern
human health or environmental
conditions, the EPA identified and
addressed environmental justice
concerns within the Technology
Transitions Rule (88 FR 73098; October
24, 2023).
K. Congressional Review Act (CRA)
This action is subject to the CRA, and
the EPA will submit a rule report to
each House of the Congress and to the
Comptroller General of the United
States. The CRA allows the issuing
agency to make a rule effective sooner
than otherwise provided by the CRA if
the agency makes a good cause finding
that notice and comment rulemaking
procedures are impracticable,
unnecessary or contrary to the public
interest (5 U.S.C. 808(2)). The EPA has
made a good cause finding for this rule
as discussed in the supplementary
information section of the preamble
where this is discussed, including the
basis for that finding.
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 amends 40 CFR part 84
as follows:
PART 84—PHASEDOWN OF
HYDROFLUOROCARBONS
1. The authority citation for part 84
continues to read as follows:
■
2. Amend § 84.54 by revising
paragraph (c)(1) as follows:
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*
*
*
*
(c) * * *
(1) Effective January 1, 2025,
residential or light commercial airconditioning or heat pump systems
using a regulated substance, or a blend
containing a regulated substance, with a
global warming potential of 700 or
greater, except for variable refrigerant
Jkt 262001
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 300
[RTID 0648–XD573]
Fraser River Pink Salmon Fisheries;
Inseason Orders
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Temporary rule; inseason
orders.
AGENCY:
NMFS publishes inseason
orders to regulate treaty tribal and nontribal (all citizen) commercial salmon
fisheries in United States (U.S.) waters
of the Fraser River Panel (Panel) Area.
The orders were issued by the (Panel) of
the Pacific Salmon Commission
(Commission) and subsequently
approved and issued by NMFS during
2023 for pink salmon fisheries within
the U.S. Panel Area. These orders
established fishing dates, times, and
areas for the gear types of U.S. treaty
tribal and all citizen commercial
fisheries during the period the Panel
exercised jurisdiction over these
fisheries.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
§ 84.54 Restrictions on the use of
hydrofluorocarbons.
15:31 Dec 22, 2023
BILLING CODE 6560–50–P
The effective dates for the
inseason orders are set out in this
document under the heading Inseason
Orders.
■
VerDate Sep<11>2014
[FR Doc. 2023–28500 Filed 12–22–23; 8:45 am]
DATES:
Authority: Pub. L. 116–260, Division S,
Sec. 103.
*
flow air-conditioning and heat pump
systems. New residential and light
commercial air-conditioning and heat
pump systems using a regulated
substance, or a blend containing a
regulated substance, with a global
warming potential of 700 or greater may
be installed prior to January 1, 2026,
where all specified components of that
system are manufactured or imported
prior to January 1, 2025.
*
*
*
*
*
Anthony Siniscal at 971–322–8407,
email: Anthony.siniscal@noaa.gov.
SUPPLEMENTARY INFORMATION: The
Treaty between the Government of the
United States of America and the
Government of Canada concerning
Pacific salmon was signed at Ottawa on
January 28, 1985, and subsequently was
given effect in the United States by the
Pacific Salmon Treaty Act (Act) at 16
U.S.C. 3631–3644.
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Under authority of the Act, Federal
regulations at 50 CFR part 300, subpart
F, provide a framework for the
implementation of certain regulations of
the Commission and inseason orders of
the Commission’s Panel for U.S. sockeye
and pink salmon fisheries in the Fraser
River Panel Area.
The regulations close the U.S. portion
of the Panel Area to U.S. sockeye and
pink salmon tribal and non-tribal
commercial fishing unless opened by
Panel regulations that are given effect by
inseason orders issued by NMFS (50
CFR 300.94(a)(1)). During the fishing
season, NMFS may issue inseason
orders that establish fishing times and
areas consistent with the Commission
agreements and regulations of the Panel.
Such orders must be consistent with
domestic legal obligations and are
issued by the Regional Administrator,
West Coast Region, NMFS. Official
notification of these inseason actions is
provided by two telephone hotline
numbers described at 50 CFR
300.97(b)(1) and in 84 FR 19729 (May 6,
2019). The inseason orders are
published in the Federal Register as
soon as practicable after they are issued.
Due to the frequency with which
inseason orders are issued, publication
of orders during the fishing season is
impracticable.
Inseason Orders
NMFS issued the following inseason
orders for U.S. fisheries within Panel
Area waters during the 2023 fishing
season, consistent with the orders
adopted by the Panel. Each of the
following inseason actions was effective
upon announcement on telephone
hotline numbers as specified at 50 CFR
300.97(b)(1) and in 88 FR 30235 (May
11, 2023); those dates and times are
listed herein. The times listed are local
times, and the areas designated are
Puget Sound Management and Catch
Reporting Areas as defined in the
Washington State Administrative Code
at Chapter 220–301–030.
Fraser River Panel Order Number 2023–
01: Issued 3:30 p.m., August 18, 2023
Treaty Tribal Fishery
Areas 4B, 5, and 6C: Open for drift
gillnet fishing from 12 p.m. (noon),
Saturday, August 19, 2023, through 12
p.m. (noon), Tuesday, August 22, 2023.
Areas 6, 7, and 7A: Open for net
fishing from 5 a.m. through 9 p.m.,
Sunday, August 20, 2023.
E:\FR\FM\26DER1.SGM
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]]>Agencies
[Federal Register Volume 88, Number 246 (Tuesday, December 26, 2023)]
[Rules and Regulations]
[Pages 88825-88832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-28500]
=======================================================================
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 84
[EPA-HQ-OAR-2021-0643; FRL-11594-02-OAR]
Phasedown of Hydrofluorocarbons: Technology Transitions Program
Residential and Light Commercial Air Conditioning and Heat Pump
Subsector
AGENCY: Environmental Protection Agency (EPA).
ACTION: Interim final rule and request for comments.
-----------------------------------------------------------------------
SUMMARY: The U.S. Environmental Protection Agency is amending a
provision of the recently finalized Technology Transitions Program
under the American Innovation and Manufacturing Act (AIM Act). This
action allows one additional year, until January 1, 2026, solely for
the installation of new residential and light commercial air
conditioning and heat pump systems using components manufactured or
imported prior to January 1, 2025. The existing January 1, 2025,
compliance date for the installation of certain residential and light
commercial air conditioning and heat pump systems may result in
significant stranded inventory that was intended for new residential
construction. EPA is promulgating this action to mitigate the potential
for significant stranded inventory in this subsector. In addition, EPA
is clarifying
[[Page 88826]]
that residential ice makers are not included in the household
refrigerator and freezer subsector under the Technology Transitions
Rule and are not subject to the restrictions for that subsector. EPA is
requesting comments on all aspects of this rule.
DATES: This interim final rule is effective on December 26, 2023.
Comments on this rule must be received on or before February 9, 2024.
ADDRESSES: You may send comments, identified by docket identification
number EPA-HQ-OAR-2021-0643, by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov
(our preferred method). Follow the online instructions for submitting
comments.
Mail: U.S. Environmental Protection Agency, EPA Docket
Center, Air and Radiation Docket, Mail Code 2822T, 1200 Pennsylvania
Avenue NW, Washington, DC 20460.
Hand Delivery or Courier (by scheduled appointment only):
EPA Docket Center, WJC West Building, Room 3334, 1301 Constitution
Avenue NW, Washington, DC 20004. The Docket Center's hours of
operations are 8:30 a.m.-4:30 p.m., Monday-Friday (except Federal
Holidays).
Instructions: All submissions received must include the Docket ID
number for this rulemaking. Comments received may be posted without
change to https://www.regulations.gov, including any personal
information provided.
You may find the following suggestions helpful for preparing your
comments: Direct your comments to specific sections of this rulemaking
and note where your comments may apply to future separate actions where
possible; explain your views as clearly as possible; describe any
assumptions that you used; provide any technical information or data
you used that support your views; provide specific examples to
illustrate your concerns; offer alternatives; and, make sure to submit
your comments by the comment period deadline. Please provide any
published studies or raw data supporting your position. Multimedia
submissions (audio, video, etc.) must be accompanied by a written
comment. The written comment is considered the official comment and
should include discussion of all points you wish to make. EPA will
generally not consider comments or comment contents located outside of
the primary submission (e.g., on the web, cloud, or other file sharing
system).
Do not submit any information you consider to be Confidential
Business Information (CBI) through https://www.regulations.gov. For
submission of confidential comments, please work with the person listed
in the FOR FURTHER INFORMATION CONTACT section. For additional
submission methods, the full EPA public comment policy, information
about CBI or multimedia submissions, and general guidance on making
effective comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT: Allison Cain, Stratospheric Protection
Division, Office of Atmospheric Programs (Mail Code 6205A),
Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington,
DC 20460; telephone number: 202-564-1566; email address:
[email protected]. You may also visit EPA's website at https://www.epa.gov/climate-hfcs-reduction for further information.
SUPPLEMENTARY INFORMATION: EPA is taking this action as an interim
final rule without prior proposal and public comment because EPA finds
that the good cause exemption from the notice and comment rulemaking
requirement of the Administrative Procedure Act (APA), 5 U.S.C. 551 et
seq., applies here.
Subsection (k)(1)(C) of the American Innovation and Manufacturing
Act (AIM Act) provides that Clean Air Act (CAA) sections 113, 114, 304,
and 307 apply to the AIM Act and any regulations EPA promulgates under
the AIM Act as though the AIM Act were part of title VI of the CAA.
However, section 307(d) does not apply to any rule referred to in
subparagraphs (A) or (B) of section 553(b) of the APA. See CAA section
307(d)(1). Section 553(b)(B) of the APA, 5 U.S.C. 553(b)(B), provides
that, when an agency for good cause finds (and incorporates the finding
and a brief statement of reasons therefor in the rule issued) that
notice and comment public procedures are impracticable, unnecessary or
contrary to the public interest, the agency may issue a rule without
providing notice and an opportunity for public comment.
EPA has determined there is good cause for promulgating this rule
without prior proposal and opportunity for comment. After signature of
EPA's October 2023 final rule that established, among other things, a
prohibition beginning on January 1, 2025, of the installation of new
residential and light commercial air conditioning and heat pump systems
using regulated substances with a global warming potential of 700 or
more, stakeholders brought to the Agency's attention that builders
order equipment in this subsector well in advance of installation,
often even before the installation date is known, and that the final
rule's compliance date would potentially strand a significant amount of
inventory. EPA is issuing this rule to address these concerns and to
mitigate the harm that would be caused by unintentionally stranding
inventory as a result of the January 1, 2025, compliance date for the
installation of certain air conditioning and heat pump systems.
Subsection (i)(6) of the AIM Act states that ``[n]o rule under this
subsection may take effect before the date that is 1 year after the
date on which the Administrator promulgates the applicable rule under
this subsection.'' In order to provide relief for entities subject to
the January 1, 2025, compliance date, and in light of subsection
(i)(6)'s one-year delay between promulgation and compliance date, EPA
is taking this rulemaking action prior to January 1, 2024, one year in
advance of the existing compliance date. It is impossible for the
Agency to conclude a notice-and-comment rulemaking to provide this
needed relief by January 1, 2024, and therefore EPA finds that this
impracticability constitutes good cause for dispensing with the
required procedures under 5 U.S.C. 553(b)(B). Nonetheless, EPA is
providing 45 days for submission of public comments following today's
action. EPA will consider all written comments submitted in the
allotted time period to determine if any change is warranted. Because
the rule revisions relieve a restriction and advance notice is not
needed, the rule is effective upon publication.
Throughout this document, whenever ``we,'' ``us,'' ``the Agency,''
or ``our'' is used, we mean EPA. Acronyms that are used in this
rulemaking that may be helpful include:
AC--Air Conditioning
AHRI--Air-Conditioning, Heating, and Refrigeration Institute
AIM Act--American Innovation and Manufacturing Act of 2020
APA--Administrative Procedure Act
CAA--Clean Air Act
EPA--U.S. Environmental Protection Agency
FR--Federal Register
HARDI--Heating, Air-conditioning & Refrigeration Distributors
International
HFC--Hydrofluorocarbon
OEM--Original Equipment Manufacturer
SNAP--Significant New Alternatives Policy
VRF--Variable Refrigerant Flow
I. Executive Summary
A. What is the purpose of this regulatory action?
The U.S. Environmental Protection Agency (EPA) is implementing
provisions of the American Innovation and Manufacturing Act of 2020,
codified
[[Page 88827]]
at 42 U.S.C. 7675 (AIM Act or the Act). Subsection (i) of the Act,
entitled ``Technology Transitions,'' authorizes EPA, by rulemaking, to
restrict the use of regulated substances (used interchangeably with
``HFCs'' in this document) \1\ in sectors or subsectors where the
regulated substances are used.
---------------------------------------------------------------------------
\1\ The Act lists 18 saturated HFCs, and by reference any of
their isomers not so listed, that are covered by the statute's
provisions, referred to as ``regulated substances'' under the Act.
---------------------------------------------------------------------------
On October 24, 2023, EPA's final rule establishing the Technology
Transitions Program was published in the Federal Register (88 FR 73098,
hereafter ``Technology Transitions Rule''). That rule restricted the
use of higher-GWP HFCs in over 40 subsectors in which they are used. It
also prohibited, among other things, the manufacture and import of
factory-completed products and the installation of certain
refrigeration, air conditioning, and heat pump systems using higher-GWP
HFCs. The compliance dates for these restrictions vary by subsector and
range from January 1, 2025, to January 1, 2028. The rule also
prohibited the sale, distribution, and export of factory-completed
products that do not comply with the relevant restrictions three years
after the prohibition on manufacture and import.
After issuance of the Technology Transitions Rule, manufacturers,
importers, and distributors of residential and light commercial air
conditioning and heat pump equipment informed EPA that the compliance
date for the restriction on installation will result in substantial
stranded inventory in that subsector for residential new construction,
including both single-family and multi-family dwellings, where builders
order heating and cooling equipment well in advance of knowing the
exact date of installation. This rule narrowly addresses the unique
circumstances of that particular subsector to prevent such equipment
from being stranded.
B. What is the summary of this regulatory action?
This interim final rulemaking provides one additional year for the
installation of new residential and light commercial air conditioning
and heat pump systems when using components that were manufactured or
imported before January 1, 2025. Specifically, this rule allows for
pre-2025 condensing units, evaporators, and air handlers using R-410A,
or other regulated substances and blends of regulated substances not
meeting the Technology Transitions Rule's restrictions, to be assembled
into new systems (i.e., installed), so long as those systems are
assembled prior to January 1, 2026.
We also clarify that residential ice makers are not included in the
household refrigerator and freezer subsector and are not subject to the
restrictions for that subsector under the Technology Transitions Rule.
The preamble to the Technology Transitions Rule incorrectly included
them as an example of a product in that subsector.
C. What is the summary of the costs and benefits?
This rule will reduce regulatory burden associated with the
Technology Transitions Program while having a negligible environmental
impact. Original equipment manufacturers (OEMs) have indicated that
collectively, over $1 billion of inventory could go unsold without an
extension of the installation date. Stranding significant amounts of
equipment that does not meet the new restrictions is counter to the
overall approach EPA has taken in the Technology Transitions Rule.
Extending the installation date for these systems will not have an
impact on the benefits modeled in the Technology Transitions Rule
because EPA is limiting the extension to equipment manufactured or
imported before the existing compliance date of January 1, 2025.
II. General Information
A. Does this action apply to me?
You may be potentially affected by this rule if you manufacture,
import, export, sell or otherwise distribute, or install residential
and light commercial air conditioning and heat pump equipment.
Potentially affected categories, by North American Industry
Classification System code, include:
Plumbing, Heating, and Air Conditioning Contractors (238220)
Air Conditioning and Warm Air Heating Equipment and Commercial
and Industrial Refrigeration Equipment Manufacturing (333415)
Major Household Appliance Manufacturing (335220)
Household Appliances, Electric Housewares, and Consumer
Electronics Merchant Wholesalers (423620)
Plumbing and Heating Equipment and Supplies (Hydronics)
Merchant Wholesalers (423720)
Warm Air Heating and Air Conditioning Equipment and Supplies
Merchant Wholesalers (423730)
Appliance Stores, Household-Type (449210)
Appliance Repair and Maintenance (811412)
This list is not intended to be exhaustive, but rather provides a
guide for readers regarding entities that EPA expects could potentially
be affected by this action. Other types of entities not listed could
also be affected. To determine whether your entity may be affected by
this action, you should carefully examine the regulatory text at the
end of this notice. If you have questions regarding the applicability
of this action to a particular entity, consult the person listed in the
FOR FURTHER INFORMATION CONTACT section.
B. What is EPA's authority for taking this action?
On December 27, 2020, the AIM Act was enacted as section 103 in
Division S, Innovation for the Environment, of the Consolidated
Appropriations Act, 2021 (codified at 42 U.S.C. 7675). Subsection
(k)(1)(A) of the AIM Act provides EPA with the authority to promulgate
necessary regulations to carry out EPA's functions under the Act,
including its obligations to ensure that the Act's requirements are
satisfied. Subsection (k)(1)(C) of the AIM Act also provides that CAA
sections 113, 114, 304, and 307 apply to the AIM Act and any
regulations EPA promulgates under the AIM Act as though the AIM Act
were part of title VI of the CAA.
The AIM Act authorizes EPA to address HFCs by providing new
authorities in three main areas: phasing down the production and
consumption of listed HFCs; managing these HFCs and their substitutes;
and facilitating the transition to next-generation technologies by
restricting use of these HFCs in the sector or subsectors in which they
are used. This rulemaking focuses on the third area: the transition to
next-generation technologies by restricting use of these HFCs in the
sector or subsectors in which they are used. Subsection (i) of the AIM
Act, ``Technology Transitions,'' provides that ``the Administrator may
by rule restrict, fully, partially, or on a graduated schedule, the use
of a regulated substance in the sector or subsector in which the
regulated substance is used.'' 42 U.S.C. 7675(i)(1). The Act lists 18
saturated HFCs, and by reference any of their isomers not so listed,
that are covered by the statute's provisions, referred to as
``regulated substances'' under the Act.\2\ (42 U.S.C. 7675(c)(1)).
Through this rule, EPA is amending recently finalized restrictions on
the use
[[Page 88828]]
of certain HFCs in the residential and light commercial air
conditioning and heat pump subsector.
---------------------------------------------------------------------------
\2\ As noted previously in this notice, ``regulated substance''
and ``HFC'' are used interchangeably in this notice.
---------------------------------------------------------------------------
C. How is EPA considering negotiated rulemaking?
Prior to proposing a rule, subsection (i)(2)(A) of the Act directs
EPA to consider negotiating with stakeholders in the sector or
subsector subject to the potential rule in accordance with negotiated
rulemaking procedures established under subchapter III of chapter 5 of
title 5, United States Code (commonly known as the ``Negotiated
Rulemaking Act of 1990''). If EPA makes a determination to use the
negotiated rulemaking procedures, subsection (i)(2)(B) requires that
EPA, to the extent practicable, give priority to completing that
rulemaking over completing rulemakings under subsection (i) that are
not using that procedure. If EPA does not use the negotiated rulemaking
process, subsection (i)(2)(C) requires the Agency to publish an
explanation of the decision not to use that procedure before
commencement of the rulemaking process.
EPA noted in the final Technology Transitions Rule that, where
appropriate, EPA will consider recent Agency actions and decisions
related to restrictions on the use of HFCs in sectors and subsectors
when considering using negotiated rulemaking procedures. EPA provided
the example of not issuing a separate notice to consider using
negotiated rulemaking for four petitions received after a first round
of petitions had received public notice. EPA's reasoning was that these
petitions were received well ahead of the final action and the
requested restrictions are in the same sectors and subsectors contained
in petitions for which a determination had already been made. EPA
stated that nothing in those four petitions caused EPA to reconsider
that decision and that it was unnecessary for the Agency to reconsider
whether to use negotiated rulemaking procedures.
Upon considering recent Agency action, specifically the Technology
Transitions Rule, today's interim final rulemaking does not merit a
reconsideration of the prior determination not to use negotiated
rulemaking procedures. This rule is a direct and immediate response to
a specific concern arising from the recent agency action to establish a
compliance date for the installation of certain systems within the
residential and light commercial air conditioning and heat pump
subsector. EPA is not addressing a new subsector nor even establishing
a new restriction. Instead, this rule provides targeted relief to
address concerns about stranded inventory in a particular subsector
subject to a recently finalized restriction.
Furthermore, this action has been requested through a November 13,
2023, letter signed jointly by the Air-Conditioning, Heating, and
Refrigeration Institute (AHRI), the Alliance for Responsible
Atmospheric Policy (the Alliance), and Heating, Air-conditioning &
Refrigeration Distributors International (HARDI), which together
represents a majority of the stakeholders in the subsector subject to
the rule.\3\ EPA does not believe that the rule would benefit from the
negotiated rulemaking procedure especially because timeliness is a
concern universally shared by stakeholders in this subsector.
---------------------------------------------------------------------------
\3\ This letter can be found in the docket for this interim
final rule at EPA docket number EPA-HQ-OAR-2021-0643.
---------------------------------------------------------------------------
III. Final Rule
A. Addressing Stranded Inventory
The November 13, 2023, letter to the EPA from AHRI, the Alliance,
and HARDI requested clarification of the provisions of the rule
regarding two categories of equipment: Residential and Light Commercial
Air Conditioning and Heat Pump Systems and Variable Refrigerant Flow
(VRF) Systems. The letter states that these organizations understand
that components for systems in these two categories manufactured or
imported before January 1, 2025, and January 1, 2026, respectively,
using a regulated substance with a GWP of 700 or more, cannot be
installed as new systems after each such compliance date. 40 CFR
84.54(a)-(c). They note that this would be ``particularly problematic
for residential new construction, including both single-family and
multi-family dwellings, where builders order heating and cooling
equipment well in advance of knowing the exact date of install. Such
equipment is not installed until construction is nearly complete, but
at time of order builders do not know when this date will be.'' The
letter further articulates that allowing the use of components
manufactured or imported prior to the compliance date to be installed
as part of new systems for one year after the compliance date would
provide some relief to the economic and practical burdens.
An important consideration in the final rule was avoiding the
stranding of inventory of existing equipment. This includes systems
that are already installed and operating as well as unsold equipment in
the manufacturing and distribution chain. EPA stated that ``[w]e
recognize that the production and purchase of products or components
that are unable to be sold to consumers is an economic and
environmental outcome no parties desire, and the proposed rule's
forward-looking compliance dates were intended to allow all parties in
the market supply chain sufficient time to avoid that outcome.'' 88 FR
73123. In response to concerns about stranded inventory raised during
the public comment period on the proposed rule, EPA made two
significant adjustments in the final rule.
First, EPA removed the applicability of the rule's use restrictions
to components. EPA explained that components are pieces of equipment
that, unlike factory-completed products, do not function independently
and must be assembled together in the field in order to function for
its intended purpose. Components are replaceable and a faulty component
can be swapped out to avoid replacing an entire system. Recognizing the
ongoing need for servicing and updating previously installed systems,
EPA allowed for the continued manufacture, import, sale, distribution,
offer for sale and distribution, and export of components that rely on
regulated substances, which would not meet the new restrictions.
Components are therefore not subject to the restrictions in the
Technology Transitions Rule, except insofar as those components may not
be installed in new systems on or after the installation compliance
dates.
Second, the rule imposed a date by which factory-completed
products, more narrowly defined as an item that is functional upon
completion of manufacturing, could no longer be distributed, sold, and
offered for sale or distribution, and extended that date in the final
rule. EPA proposed that the ``sell-through'' limitation for such
products would be one year after the compliance date for manufacturing
and importing. The Agency received many comments on this topic,
including from those that considered one year to be insufficient
especially for certain seasonal products. In the final rule, EPA
provided a sell-through for factory-completed products for three years
after the manufacture and import compliance date.
Through these two modifications in the final rule, EPA believed it
had minimized the potential for stranded inventory. Specifically, with
respect to components, the Agency's view was that there would continue
to be a market for components not meeting the GWP limit thresholds for
new systems, because
[[Page 88829]]
those components could continue to enter the market to service existing
systems. However, since the rule's signature, stakeholders representing
the air conditioning and heat pump subsector have raised concerns
indicating that certain aspects of the rule's compliance date structure
may result in unintended stranded inventory. EPA has reevaluated the
specific circumstances for residential and light commercial air
conditioning and heat pumps, and for the reasons articulated below is
extending the installation compliance date for that subsector from
January 1, 2025, to January 1, 2026, when using components that were
manufactured or imported prior to January 1, 2025. In this interim
final rule, the Agency is not considering the January 1, 2026,
installation compliance date applicable to VRF systems; however, EPA
intends to consider VRF systems in a separate notice and comment
action.
EPA has evaluated the planning, purchasing, and installation
timeframes for residential new construction as referenced in the
November 13, 2023, letter from industry stakeholders. We recognize that
it is common in the residential new construction industry for
communities and dwellings to be planned well in advance, including
plans for the heating and cooling systems intended to be installed in
that new construction. Builders of residential new construction may
order those planned heating and cooling systems in concert with the
planning process without knowing when those systems will be installed.
As noted by stakeholders, installation of these systems is often one of
the final steps in residential construction. We acknowledge that it may
therefore be the case that for new residential construction planned to
occur in 2025, builders may have already taken action with respect to
the heating and cooling systems that are planned to be installed in
that new construction. Specifically, for construction occurring during
2025, components of residential and light commercial air conditioning
and heat pump systems may have already been ordered or purchased by
builders, such that leaving the January 1, 2025, installation
compliance date unaltered could result in builders of new residential
construction being left with stranded inventory--residential and light
commercial air conditioning and heat pump components--that could not be
used. In particular, because such equipment may already be well along
the distribution chain, including in the possession of the end-user
builder, it would be challenging to redirect that equipment to another
user who would be in a different segment of the market, such as those
servicing existing systems. As discussed, EPA made changes to the final
Technology Transitions Rule specifically to avoid stranding inventory,
as this outcome is undesirable economically and environmentally, and
the issue addressed in this rule was not brought to the Agency's
attention until after the final rule was signed. This action's
extension of the January 1, 2025, new installation compliance date to
January 1, 2026, for components that were manufactured or imported
prior to January 1, 2025, is intended to avoid stranding those
components in the distribution chain.
We also acknowledge that some areas of the residential and light
commercial air conditioning and heat pump subsector are experiencing
rapid growth. In 2022, sales of heat pumps in the United States
outpaced gas furnaces for the first time ever, following a 50% increase
from 2015 to 2020. For certain technologies with extremely limited
historic use in the United States, such as mini-split and multi-split
systems, the final Technology Transitions Rule's continued allowance of
high-GWP HFCs in components for repair and servicing only may be
insufficient to absorb projected inventory of those components.
Anticipated manufacture and import of mini-split systems, for example,
is much larger than the stock of installed systems that are old enough
to need components for repair or replacement. The nascent and rapid
expansion of certain subsets of the residential and light commercial
air conditioning and heat pump subsector therefore further supports the
extension of the January 1, 2025, compliance date to January 1, 2026,
for installation of components manufactured or imported prior to
January 1, 2025.
B. Limiting the Environmental Impact of This Action
EPA is narrowly tailoring this rule to respond to stakeholder
concerns about stranded inventory in this subsector while maintaining
the environmental benefits of the Technology Transitions Rule. To do
so, EPA is extending the installation compliance date only for new
systems installed from specified components (e.g., condensing units and
indoor evaporators) that were manufactured or imported prior to January
1, 2025. This restriction means that the total number of higher-GWP
systems installed in 2024 and 2025 would match what the Agency modeled
for installation in 2024. The extra year for installation would not
increase demand for HFCs in this subsector but rather could shift some
of the demand from 2024 into 2025.
EPA is not extending the original compliance date for new
installations in this subsector beyond January 1, 2025, when using
components manufactured or imported on or after January 1, 2025. These
components remain subject to the original restrictions of the
Technology Transitions Rule. Specifically, if they contain an HFC with
a GWP of 700 or greater their use is limited to servicing previously
installed systems. As elaborated on more below, all the existing
labeling, reporting, and recordkeeping requirements also continue to
apply to components using, or intended to use, any HFC. Extending the
compliance date for all installations in the subsector by one year is
not warranted based on EPA's prior analysis of the availability of
substitutes within this subsector, as described in the Technology
Transitions Rule and supporting documents in the docket for that rule.
EPA finds that this approach effectively responds to stakeholder
concerns about stranded inventory while remaining protective of the
environment. This approach was suggested by industry stakeholders in
their letter dated November 13, 2023, and it aligns with industry's
plans to transition in this subsector.
This interim final rule provides an additional year for
installation only if all ``specified components'' of that system are
manufactured or imported prior to January 1, 2025. The term ``specified
component'' is defined under the Technology Transitions Rule as
``condensing units, condensers, compressors, evaporator units, and
evaporators.'' Other components of an air conditioning or heat pump
system such as valves or refrigerant piping are not restricted by the
Technology Transitions Rule and can be installed regardless of
manufacture or import date.
C. How do the labeling, recordkeeping, and reporting provisions apply?
The Technology Transitions Rule requires labels on products and
certain components that use HFCs. The labeling requirement takes effect
for each subsector at the same time as the manufacture and import
prohibition for products or the installation prohibition for systems.
This timing reflects the primary purpose of the labels, which is for
assessing compliance of products and systems in sectors and subsectors
with active HFC restrictions.
[[Page 88830]]
This action does not require any specific labeling for components
that are manufactured or imported prior to January 1, 2025. Nameplates
typically include the date that a component is manufactured, which is
sufficient for the purposes of this rule. Furthermore, it would be
impractical to require entities that are not OEMs to relabel components
that are already within the distribution chain.
This action does not change the existing labeling requirements
related to components that are effective January 1, 2025. For specified
components of systems, the Technology Transitions Rule required labels
as of the applicable installation compliance date. This means that for
specified components manufactured or imported on or after January 1,
2025, the final Technology Transition Rule's requirements continue to
apply. These requirements include, among other things, that such
components must be labeled with the statement ``For servicing existing
equipment only.'' This labeling is particularly important to
distinguish components manufactured or imported before January 1, 2025,
from those that are not.
The Technology Transitions Rule established recordkeeping and
reporting requirements for any entity that manufactures or imports
products or specified components that use or are intended to use HFCs
in the sectors and subsectors covered in that rule. The reporting
period for all sectors and subsectors starts on January 1, 2025, and
the first reports must be submitted to the Agency by March 31, 2026.
This action does not add to nor modify the existing reporting and
recordkeeping requirements for specified components. EPA is not
establishing new reporting and recordkeeping requirements related to
the sale or installation of components manufactured or imported prior
to January 1, 2025. Reporting and recordkeeping is still required for
specified components that are manufactured or imported on or after
January 1, 2025.
D. Evaluation of the Subsection (i)(4) Factors
Subsection (i)(4) of the AIM Act directs EPA to factor in, to the
extent practicable and using best available data, various
considerations when carrying out a rulemaking under subsection (i). As
discussed in detail in the preamble to the final Technology Transitions
Rule, EPA views subsection (i)(4)(A) through (D) as providing
overarching direction for setting restrictions under subsection (i). 88
FR at 73129-73141. EPA is not in this rule reconsidering the
interpretations provided in the final Technology Transitions Rule
regarding how it considers the factors laid out in subsection (i)(4).
Nor is the Agency revisiting its analysis of the (i)(4) factors with
respect to the residential and light commercial air conditioning and
heat pump subsector as set forth in the final rule preamble. 88 FR
73177-73180. However, in issuing this narrow adjustment to the January
1, 2025, compliance date for the residential and light commercial air
conditioning and heat pump subsector, we have considered the (i)(4)
factors to the extent practicable, as applicable to the Agency's
adjustment of that compliance date.
The issue being addressed by this interim final rule was brought to
the Agency's attention by stakeholders impacted by the Technology
Transitions Rule. As noted in EPA's discussion of subsection (i)(4)(A),
in addition to information generated by other governing bodies and
agencies, the Agency does also take into account information provided
by industry, environmental organizations, trade associations, and
academia, to name a few. See 88 FR 73129. We acknowledge that in some
cases, regulated entities may be best situated to identify best
available information regarding implementation challenges. We are as
part of this action providing an opportunity for comment and invite
stakeholders who may have information relevant to this action to weigh
in.
With respect to the Agency's evaluation of the availability of
substitutes under subsection (i)(4)(B), EPA previously determined that
substitutes with a GWP less than 700 are available effective January 1,
2025, for the residential and light commercial air conditioning and
heat pump subsector. EPA has not changed that determination and
continues to find that substitutes with a GWP less than 700 will be
available January 1, 2025, across this subsector. Manufacturers and
importers in this subsector are currently making air conditioning and
heat pump systems and components with lower-GWP refrigerants for other
markets and are prepared to meet the January 1, 2025, installation
compliance date for such systems. This action is not reconsidering the
Agency's prior evaluation of the availability of substitutes for
meeting the use restrictions issued in the final Technology Transitions
Rule for this subsector; rather, this action is narrowly tailored to
address the disposition of components manufactured or imported prior to
January 1, 2025.
EPA's action to adjust the installation compliance date for certain
installations within this subsector is motivated in large part by the
policy goal of avoiding stranding inventory where possible. We believe
this goal to be consistent with the direction in subsection (i)(4)(C),
which instructs the Agency to factor in, to the extent practicable,
overall economic costs and environmental impacts, as compared to
historical trends. As discussed in the Technology Transitions Rule, EPA
interprets (i)(4)(C) as purposefully accommodating different types and
degrees of analysis of economic costs and environmental impacts,
including costs and impacts that may be difficult to quantify. The
narrow adjustment made in this interim final rule reduces the potential
to unintentionally strand components. This action will not affect the
overall consumption of HFCs and thus is not anticipated to have
environmental impacts compared to the recently finalized Technology
Transitions Rule. Further discussion of environmental impacts can be
found in Section III.B.
EPA requests comment on the incremental costs and benefits
associated with this action, including avoiding impacts such as
stranded inventory (e.g., number and type of units affected) and on the
incremental impacts to regulated entities regarding compliance (e.g.,
avoiding redistribution of equipment, avoiding revisions or new permits
to replace previously secured building permits).
Finally, subsection (i)(4)(D) directs the Agency to factor in, to
the extent practicable, the remaining phasedown period for regulated
substances under the allowance allocation program. The reduction in the
supply of HFCs is an important factor supporting compliance dates and
GWP limits that are as stringent as feasible under the analysis of all
the (i)(4) factors. EPA finds that this rule will not materially affect
the demand for HFCs because it limits installations to components that
were manufactured or imported prior to January 1, 2025. The effect of
this rule is to extend the installations that EPA modeled to occur in
2024 over the two-year period of 2024 and 2025. EPA does not anticipate
an increase from the total number of installed systems modeled in the
Technology Transitions Rule's Regulatory Impact Assessment Addendum.
Were the Agency to allow for the installation of new systems using
components manufactured or imported through January 1, 2026, for
instance, EPA would then find an effect on the
[[Page 88831]]
number of new systems and increased demand for HFCs.
IV. Other Matters
This interim rule is also providing a clarification regarding the
scope of equipment within the household refrigerators and freezers
subsector. For the reasons discussed below, household ice makers are
not included within that subsector for purposes of the Technology
Transitions Rule.
The proposed Technology Transitions Rule provided a functional
description of the equipment found in each subsector and a non-
exhaustive list of examples. EPA did not list all of the applications
within a particular subsector given the variety of equipment types and
end-uses. The proposed rule listed residential refrigeration systems as
household refrigerators, freezers, and combination refrigerator/
freezers and described the subsector as follows: ``The designs and
refrigeration capacities of equipment vary widely. Household freezers
only offer storage space at freezing temperatures, while household
refrigerators only offer storage space at non-freezing temperatures.
Products with both a refrigerator and freezer in a single unit are most
common. For purposes of this proposed rule, other small refrigerated
household appliances such as chilled kitchen drawers, wine coolers, and
minifridges also fall within this subsector.'' 87 FR 76785.
The final rule incorrectly added ``household ice makers'' to the
list of examples. 88 FR 73173. The functional description of this
subsector in the Technology Transitions Rule remained the same between
proposal and final and was equipment that offers storage space at
freezing and non-freezing temperatures. Residential ice makers merit
additional consideration because they are primarily designed to produce
the ice in addition to providing storage for that ice at freezing
temperatures. The types of ice and processes used to make them may
differ from the other equipment covered by the restrictions for this
subsector and additional analysis of available substitutes for
household ice makers is warranted. As such, EPA does not consider
residential ice makers to be within the scope of the household
refrigerators and freezers subsector or the requirements of the
Technology Transitions Rule.
V. Statutory and Executive Order Review
Additional information about these statutes and Executive Orders
can be found at https://www.epa.gov/laws-regulations/laws-and-executive-orders.
A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 14094: Modernizing Regulatory Review
This action is a ``significant regulatory action'' under Executive
Order 12866, as amended by Executive Order 14094. Nevertheless, the
Office of Management and Budget waived review of this action. The EPA
prepared an analysis of the potential impacts associated with this
action. This analysis, Regulatory Impact Analysis of the Proposed Waste
Emission Charge, is available in docket EPA-HQ-OAR-2023-0434 to this
rulemaking and is briefly summarized in Section V of this preamble.
B. Paperwork Reduction Act (PRA)
This action does not impose an information collection burden under
the PRA because it does not contain any information collection
activities.
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. In
making this determination, EPA concludes that the impact of concern for
this rule is any significant adverse economic impact on small entities
and that the agency is certifying that this rule will not have a
significant economic impact on a substantial number of small entities
because the rule relieves regulatory burden on the small entities
subject to the rule. This rule prevents the stranding of components
used to install residential and light commercial air conditioning and
heat pump systems. We have therefore concluded that this action will
relieve regulatory burden for all directly regulated small entities.
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.
G. Executive Order 13045: Protection of Children From Environmental
Health and Safety Risks
EPA interprets Executive Order 13045 as applying only to those
regulatory actions that concern environmental health or safety risks
that EPA has reason to believe may disproportionately affect children,
per the definition of ``covered regulatory action'' in section 2-202 of
the Executive Order. This action is narrowly tailored to prevent the
stranding of certain air conditioning and heat pump equipment while not
affecting the demand for HFCs. Therefore, this action is not subject to
Executive Order 13045 because it does not concern an environmental
health risk or safety risk. Since this action does not concern human
health, EPA's Policy on Children's Health also does not apply.
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 and
Executive Order 14096: Revitalizing Our Nation's Commitment to
Environmental Justice for All
The EPA believes that this type of action does not concern human
health or environmental conditions and therefore cannot be evaluated
with respect to potentially disproportionate
[[Page 88832]]
and adverse effects on communities with environmental justice concerns.
This action is narrowly tailored to prevent the stranding of inventory
of air conditioning and heat pump equipment while not affecting the
demand for HFCs.
Although this action does not concern human health or environmental
conditions, the EPA identified and addressed environmental justice
concerns within the Technology Transitions Rule (88 FR 73098; October
24, 2023).
K. Congressional Review Act (CRA)
This action is subject to the CRA, and the EPA will submit a rule
report to each House of the Congress and to the Comptroller General of
the United States. The CRA allows the issuing agency to make a rule
effective sooner than otherwise provided by the CRA if the agency makes
a good cause finding that notice and comment rulemaking procedures are
impracticable, unnecessary or contrary to the public interest (5 U.S.C.
808(2)). The EPA has made a good cause finding for this rule as
discussed in the supplementary information section of the preamble
where this is discussed, including the basis for that finding.
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 amends 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. Amend Sec. 84.54 by revising paragraph (c)(1) as follows:
Sec. 84.54 Restrictions on the use of hydrofluorocarbons.
* * * * *
(c) * * *
(1) Effective January 1, 2025, residential or light commercial air-
conditioning or heat pump systems using 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 and heat pump systems. New residential and light
commercial air-conditioning and heat pump systems using a regulated
substance, or a blend containing a regulated substance, with a global
warming potential of 700 or greater may be installed prior to January
1, 2026, where all specified components of that system are manufactured
or imported prior to January 1, 2025.
* * * * *
[FR Doc. 2023-28500 Filed 12-22-23; 8:45 am]
BILLING CODE 6560-50-P
