Phasedown of Hydrofluorocarbons (HFCs): Issuing Allowance Allocations for 2024
On this page:
Background
What is the AIM Act?
The American Innovation and Manufacturing (AIM) Act was enacted on December 27, 2020. The AIM Act directs the U.S. Environmental Protection Agency (EPA) to address HFCs. Specifically, the AIM Act directs EPA to phase down production and consumption[1] of HFCs to 15% of their baseline levels in a stepwise manner by 2036 through an allowance allocation and trading program.
How do Allowances Work?
EPA uses an allowance as the unit of measure that controls production and consumption. EPA will issue allowances that will be valid between January 1 and December 31 of a given year, known as a “calendar-year allowance.” A calendar-year allowance represents the privilege granted to an entity to produce or import regulated substances in that year.
Entities will need to expend allowances in order to produce or import bulk HFCs. Producing HFCs will require expending both production allowances and consumption allowances. Importing HFCs will require expending only consumption allowances. A third category of allowances called “application-specific allowances” can be used to either produce or import HFCs for use in the six applications listed in the AIM Act.
EPA has developed a calculator to help allowance holders understand how allowances translate to quantities of various HFCs they intend to produce or import.
Under the HFC Allocation Framework Rule, EPA can issue administrative consequences for activities including, but not limited to, submitting false, inaccurate, or misleading information; importing HFCs without expending the requisite number of allowances; and failing to report required information. Under these provisions (see 40 CFR 84.35), EPA may retire, revoke, or withhold the allocation of HFC allowances or ban a company from receiving future allowances.
Issuance of 2024 HFC Allowances
How do Entities Receive Allowances for 2024?
EPA issued allowances to entities that produced and/or imported HFCs in 2021 or 2022, or both 2021 and 2022, based on the three highest years of production or consumption between 2011-2019. EPA has also issued allowances to entities that were previously allocated allowances as new market entrants on March 31, 2022. EPA also issued “application-specific allowances” directly to the entities that operate within the six applications listed in the AIM Act. These entities will be able to confer their allowances to producers or importers to acquire needed HFCs.
EPA signed "Phasedown of Hydrofluorocarbons: Notice of 2024 Allowance Allocations for Production and Consumption of Regulated Substances under the American Innovation and Manufacturing Act of 2020," on September 29, 2023, to provide notice in the Federal Register of EPA’s allocation of calendar year 2024 allowances. When the notice is published in the Federal Register, the link will be updated.
- Federal Register link to HFC Allowance Allocations for 2024
- Overview of Allowances and Exchange Values (pdf)
- Prior year allocations
How Did the Administrative Consequences Affect the Number of Allowances Available?
EPA finalized a number of independent administrative consequences effective September 29, 2023 (see the full list of finalized administrative consequences). These are final agency actions subject to judicial review. In some instances, EPA revoked calendar year 2024 consumption allowances; when the Agency revokes an allowance, it is taken back from an allowance holder and redistributed to all other allowance holders. EPA redistributed consumption allowances that were revoked to consumption allowance holders that were not subject to a final administrative consequence effective September 29, 2023, or had an administrative consequence solely withholding allowances.
Accordingly, the Agency is also announcing the number of available consumption allowances as of September 29, 2023, for all eligible consumption allowance holders due to finalized administrative consequences. More information is also available in the Federal Register Notice to announce EPA’s issuance of calendar year 2024 allowances.
Application-specific Allowance Allocations for 2024
The figure and table below illustrate the application-specific allowances allocated to each entity for 2024. In the figure, click on an application (i.e., inner slice) to view all entities allocated allowances for that application along with their respective allowances. Click the inner circle again to return to the full figure. Hover over any slice to view the allowances allocated for that entity or application.
Distribution of Application-specific HFC Allowances for 2024
Application-specific HFC Allowances for 2024
| Entity | Application | Application-Specific Allowances (MTEVe) Allocated |
|---|---|---|
| Total Issued | All | 5,836,924.3 |
| Analog Devices | Semiconductors | 18,130.0 |
| Applied Materials | Semiconductors | 10,666.7 |
| Armstrong Pharmaceuticals | Propellants in MDIs | 230,001.2 |
| ASML US | Semiconductors | 1,033.8 |
| AstraZeneca Pharmaceuticals | Propellants in MDIs | 3,848.9 |
| Aurobindo Pharma USA | Propellants in MDIs | 28,316.9 |
| Broadcom | Semiconductors | 213.1 |
| Compsys | Structural Composite Preformed Polyurethane Foam | 19,928.6 |
| Defense Technology | Defense Sprays | 1,537.4 |
| Diodes Incorporated | Semiconductors | 2,584.5 |
| General Electric | Semiconductors | 73.9 |
| GlaxoSmithKline | Propellants in MDIs | 523,906.9 |
| GlobalFoundries | Semiconductors | 152,916.2 |
| Guardian Protective Devices | Defense Sprays | 7,467.0 |
| Hitachi High-Tech America | Semiconductors | 537.9 |
| IBM Corporation | Semiconductors | 369.4 |
| Intel Corporation | Semiconductors | 597,502.0 |
| Invagen Pharmaceuticals | Propellants in MDIs | 156,427.2 |
| Jireh Semiconductor | Semiconductors | 1,600.2 |
| Keysight Technologies | Semiconductors | 537.7 |
| Kindeva Drug Delivery | Propellants in MDIs | 335,693.4 |
| LA Semiconductor | Semiconductors | 2,584.5 |
| Lam Research Corp. | Semiconductors | 182,210.4 |
| Lupin | Propellants in MDIs | 21,415.7 |
| Medtronic Tempe Campus | Semiconductors | 457.1 |
| Microchip Technology | Semiconductors | 43,757.2 |
| Micron Technology | Semiconductors | 40,557.8 |
| Newport Fab DBA TowerJazz | Semiconductors | 6,414.4 |
| Northrop Grumman Corporation | Semiconductors | 2,116.0 |
| NXP Semiconductor | Semiconductors | 72,169.2 |
| Odin Pharmaceuticals | Propellants in MDIs | 1,075.7 |
| Polar Semiconductor | Semiconductors | 11,718.5 |
| Proteng Distribution | Onboard Aerospace Fire Suppression | 6,723.4 |
| Qorvo Texas | Semiconductors | 1,065.3 |
| Raytheon Technologies | Onboard Aerospace Fire Suppression | 1,535.4 |
| Renesas Electronics America | Semiconductors | 1,065.3 |
| Samsung Austin Semiconductor | Semiconductors | 334,439.8 |
| Security Equipment Corporation | Defense Sprays | 53,652.3 |
| Semiconductor Components Industries DBA ON Semiconductor | Semiconductors | 19,001.0 |
| SkyWater Technology | Semiconductors | 18,718.8 |
| Skyworks Solutions | Semiconductors | 536.8 |
| Taiwan Semiconductor Manufacturing Company Arizona Corporation (TSMC Arizona Corporation) | Semiconductors | 34,250.1 |
| Texas Instruments | Semiconductors | 193,836.7 |
| The Research Foundation for The State University of New York OBO SUNY Polytechnic Institute | Semiconductors | 1,034.4 |
| Tokyo Electron America | Semiconductors | 558.8 |
| Tower Semiconductor San Antonio | Semiconductors | 8,502.2 |
| UDAP Industries | Defense Sprays | 37,629.1 |
| Wabash National Corporation | Structural Composite Preformed Polyurethane Foam | 66,340.0 |
| WaferTech | Semiconductors | 18,103.3 |
| Wolfspeed | Semiconductors | 48,648.1 |
| X-FAB Texas | Semiconductors | 2,432.6 |
| Department of Defense | Mission-critical Military End Uses | 2,511,081.5 |
Consumption Allowance Allocations for 2024
The figures and table below illustrate the consumption allowances allocated to each entity for 2024. The first figure shows allowances for entities receiving greater than 0.5% of all consumption allowances and aggregates those entities receiving fewer than 0.5% of all consumption allowances. The second figure shows allowances for entities receiving less than 0.5% of all consumption allowances (i.e., those aggregated in the first figure). In the figures, hover over an entity (i.e., slice) to view its allowances. In the legend, double click on an entity to show only that entity in the pie chart. Click on an entity in the legend to hide it from the pie chart, and click it again to add it back.
Distribution of HFC Consumption Allowances for 2024, with Entities Receiving <0.5% Aggregated
Distribution of HFC Consumption Allowances for 2024, Showing Only Entities Receiving <0.5%
HFC Consumption Allowances for 2024
| Entity | Allowances Allocated from Methodology in 40 CFR 84.13 (MTEVe) | Available Allowances as of September 29, 2023 (MTEVe)1, 2, 3 |
|---|---|---|
| Application-specific allowances4 | 5,836,924.3 | 5,836,924.3 |
| Total2, 3 | 181,522,990.0 | 181,276,949.7 |
| A.C.S. Reclamation & Recovery (Absolute Chiller Services) | 128,987.8 | 129,280.9 |
| Ability Refrigerants | 128,987.8 | 129,280.9 |
| ACT Commodities | 50.4 | 50.5 |
| Advance Auto Parts | 461,215.3 | 462,263.3 |
| Advanced Specialty Gases | 184,102.8 | 184,521.1 |
| AFK & Co. | 124,689.8 | 116,136.9 |
| AFS Cooling | 128,987.8 | 129,280.9 |
| A-Gas | 2,199,784.7 | 2,204,783.0 |
| Air Liquide USA2 | 321,682.9 | 322,413.8 |
| AllCool Refrigerant Reclaim | 128,987.8 | 129,280.9 |
| American Air Components | 128,987.8 | 0.0 |
| Arkema | 20,051,844.9 | 20,097,406.2 |
| Artsen | 663,053.3 | 662,533.2 |
| Automart Distributors DBA Refrigerant Plus | 128,987.8 | 129,280.9 |
| AutoZone Parts | 1,304,000.7 | 1,306,963.6 |
| AW Product Sales & Marketing | 77,991.8 | 78,169.0 |
| Bluon | 21,590.6 | 0.0 |
| CC Packaging | 125,118.2 | 125,402.5 |
| Chemours | 22,115,332.4 | 22,165,582.4 |
| Chemp Technology | 128,987.8 | 129,280.9 |
| ChemPenn3 | 14,336.2 | 14,320.0 |
| ComStar International | 232,510.8 | 233,039.1 |
| Creative Solution2 | 128,987.8 | 129,280.9 |
| Cross World Group | 128,987.8 | 129,280.9 |
| Daikin America | 2,013,820.3 | 2,018,396.1 |
| EDX Industry | 370,884.7 | 371,727.4 |
| Electronic Fluorocarbons | 67,293.9 | 34,827.9 |
| Fireside Holdings DBA American Refrigerants | 128,973.9 | 129,266.9 |
| First Continental International | 496,747.8 | 497,876.5 |
| FluoroFusion Specialty Chemicals | 1,647,053.3 | 1,641,548.1 |
| Freskoa USA | 128,987.8 | 129,280.9 |
| GlaxoSmithKline | 347,339.2 | 348,128.4 |
| Golden Refrigerant | 128,987.8 | 129,280.9 |
| Harp USA | 493,996.4 | 495,118.8 |
| Honeywell International | 53,136,510.9 | 52,905,176.9 |
| Hudson Technologies | 1,928,081.5 | 1,932,462.4 |
| Hungry Bear | 128,987.8 | 129,280.9 |
| ICool USA | 2,198,406.6 | 2,203,401.8 |
| IGas Holdings | 16,846,810.7 | 16,885,089.6 |
| Iofina Chemical | 817.1 | 819.0 |
| Kidde-Fenwal | 128,987.8 | 129,280.9 |
| Lenz Sales & Distribution | 716,447.4 | 718,075.3 |
| Lina Trade | 128,987.8 | 129,280.9 |
| Linde | 343,607.9 | 344,388.6 |
| Matheson Tri-Gas2 | 22,015.7 | 22,065.7 |
| MEK Chemical Corporation | 53,572.5 | 53,694.2 |
| Meraki Group | 128,987.8 | 129,280.9 |
| Metalcraft | 103,835.2 | 104,071.1 |
| Mexichem Fluor DBA Koura | 16,441,211.7 | 16,478,569.0 |
| Mondy Global | 205,649.7 | 206,117.0 |
| National Refrigerants | 12,780,590.6 | 12,809,630.4 |
| Nature Gas Import and Export | 528,873.0 | 530,074.7 |
| North American Refrigerants | 128,987.8 | 129,280.9 |
| O23 Energy Plus | 128,987.8 | 129,280.9 |
| Perfect Score Too DBA Perfect Cycle | 24,427.9 | 24,483.4 |
| Reclamation Technologies | 256,685.4 | 257,268.6 |
| Resonac America (formerly Showa Chemicals of America) | 42,851.2 | 0.0 |
| RGAS (formerly listed as Combs Gas) | 2,951,990.2 | 2,958,697.6 |
| RMS of Georgia | 1,063,455.0 | 1,065,871.4 |
| Sciarra Laboratories | 5,604.6 | 5,617.3 |
| SDS Refrigerant Services | 128,987.8 | 129,280.9 |
| Solvay Fluorides | 711,375.5 | 712,991.9 |
| Summit Refrigerants | 128,987.8 | 129,280.9 |
| SynAgile Corporation | 725.8 | 727.4 |
| Technical Chemical | 2,203,622.1 | 2,208,629.1 |
| TradeQuim | 128,987.8 | 129,280.9 |
| Transocean Offshore Deepwater Drilling | 11.0 | 11.0 |
| Tulstar Products3 | 473,694.4 | 428,260.9 |
| Tyco Fire Products | 128,987.8 | 129,280.9 |
| USA United Suppliers of America DBA USA Refrigerants | 273,401.8 | 274,023.0 |
| USSC Acquisition Corp3 | 84,777.8 | 84,966.9 |
| Walmart | 1,471,574.6 | 1,474,918.3 |
| Waysmos USA | 361,839.8 | 362,662.0 |
| Wego Chemical Group | 36,492.6 | 36,575.5 |
| Weitron | 4,089,895.7 | 4,099,188.7 |
| Wesco HMB | 128,987.8 | 129,280.9 |
| Wilhelmsen Ships Service | 26,063.9 | 26,123.1 |
1 These values account for administrative consequences for certain entities that are effective on September 29, 2023. Additional details can be found in the Federal Register notice and on EPA’s administrative consequences webpage.
2 Updated to reflect allocation of previously withheld allowances to Matheson Tri-Gas, Air Liquide USA, and Creative Solution, effective January 25, 2024.
3 Updated to reflect finalized administrative consequences for Tulstar Products and USSC Acquisition Corp effective March 31, 2024, and ChemPenn effective June 6, 2024.
4 For more details, see Application-specific Allowances allocated under 40 CFR 84.13.
Production Allowance Allocations for 2024
The figure and table below illustrate the production allowances allocated to each entity for 2024. In the figure, hover over an entity (i.e., slice) to view its allowances. In the legend, double click on an entity to show only that entity in the pie chart. Click on an entity in the legend to hide it from the pie chart, and click it again to add it back.
Distribution of HFC Production Allowances for 2024
HFC Production Allowances for 2024
| Entity | Allowances Allocated from Methodology in 40 CFR 84.9 (MTEVe) |
|---|---|
| Application-specific allowances1 | 5,836,924.3 |
| Total | 229,521,263.0 |
| Arkema | 26,990,669.0 |
| Chemours | 50,038,369.2 |
| Honeywell International | 113,275,864.9 |
| Iofina Chemical | 1,160.9 |
| Mexichem Fluor DBA Koura | 33,378,274.7 |
1 For more details, see Application-specific Allowances allocated under 40 CFR 84.13.