Environmental

AIM Act, HFC Regulations, SNAP, and Refrigerant Management

Overview

Congress passed the American Innovation and Manufacturing (AIM) Act in 2020 and instructed EPA to implement a regulatory scheme to phase out hydrofluorocarbon (HFC)-based refrigerants due to their high global warming potential. In response, EPA promulgated the HFC Allowance Allocation Rule, Technology Transitions Rule, and HFC Management Rule. These regulations have major implications for HFC producers, suppliers, end-users, and reclaimers and broadly affect the retail industry due to HVAC, refrigerant, and fire suppression systems used throughout retail facilities and distribution networks. Compounding the complexity, many states, such as California, Colorado, Maryland, Virginia, New York, and Washington, have adopted their own HFC regulations or Refrigerant Management Programs.

Hunton attorneys have a wealth of experience in this space, having commented on the HFC regulations during the notice and comment phase, led litigation against the Technology Transition Rule, and counseled clients on compliance with the regulations. We have also represented clients in EPA enforcement actions related to alleged violations of HFC regulations.

Our interdisciplinary team comprises nationally recognized practitioners and trial attorneys, including a former general counsel of the EPA, and other former EPA and state agency personnel. We understand the HFC regulations, their impact to industry, and the legal and practical issues surrounding them. And we work closely with our clients as strategic partners, anticipating challenges before they arise, vigorously defending their interests when needed, and guiding them through periods of growth and change with informed legal counsel.

Title VI and SNAP

Promulgated under Title VI of the Clean Air Act, EPA’s Significant New Alternatives Policy (SNAP) Program provides the framework and process for evaluating and approving any new refrigerant alternatives proposed for usage in US commerce and appliances. The SNAP Program developed as ozone depleting substances (ODS) began their phase out from the US economy in the 1990s. For each proposed refrigerant substitute, the SNAP Program looks at its ozone depleting potential, global warming potential, toxicity, flammability, occupational and consumer health and safety, air quality effect, and ecosystem effect. As the refrigerant industry is transitioning away from HFC-based refrigerants, the SNAP Program is also the vehicle to obtain EPA approval for new HFC-alternative refrigerants.

Our attorneys have extensive experience with Title VI and the SNAP Program. We have advised clients through the SNAP Program application and approval process for their proposed refrigerant substitutes. We additionally provide counseling and advocacy for clients seeking to test market their products under the SNAP Program’s notification exemption.

Compliance and Regulatory

HFC producers and suppliers must understand the complex HFC Allowance Allocation Program now inherent to their operations. Refrigerant end-users must be aware of the Technology Transitions Rule’s complicated subsector-by-subsector restrictions on HVAC, cooling, and refrigeration appliances when designing, construction, or modifying their facilities. And beginning in 2026, end-users must navigate the myriad of requirements for refrigerant leak detection, repair, and management imposed by the HFC Management Rule.

Our regulatory attorneys are aware of the latest changes in federal and state regulations relating to HFCs and offer compliance guidance on everything from the production and supplier stage to end of life or use of HFC-based appliances. For ODS systems still in use, our team counsels end-users, service providers, and reclaimers on federal and state requirements.  

We understand the complexities of regulations that impact companies throughout the supply chain and recognize the importance of multijurisdictional strategies that account for costs, technical feasibility, and compliance. Whether it’s assisting with regulatory strategy and compliance planning, engaging with regulatory bodies, or advocating for favorable policies, our team works to ensure that clients’ voices are heard and their interests protected.

Highlights

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