2015-2019 Proposed HCFC 

Allocation Rule

US EPA, Office of Atmospheric Programs

SBA Environmental Roundtable

January 31, 2014
Today’s Presentation

• Background on the HCFC Phaseout

• How EPA Developed the Proposed Options

• Proposed HCFC-22 Approaches and 

Consumption Allocation Amounts

• Other Proposals in the Rule
Why phase out HCFCs?

• HCFCs deplete the 

stratospheric ozone layer

• Ozone layer shields Earth

from ultraviolet radiation:

—Skin cancer

—Cataracts

—Weakened immune 

systems

—Damage to plant life, 

aquatic ecosystems
How EPA Implements the HCFC Phaseout

• EPA must ensure compliance with the 

Montreal Protocol & Clean Air Act Title VI

– Phase out of all ozone-depleting substances

• Goal: smoothly transition away from HCFCs

– Focus on HCFC-22, it’s 90+% of HCFC use

• EPA writes rules that issue allowances for 

import and production of virgin HCFCs

– Allowances decrease over time

– No HCFC-22 allowances in 2020 or beyond

– Complete ban on production and import in 2030
HCFC-22 phaseout timeline

• Jan. 1, 2010: HCFC-22 may only be produced or 

imported for use in servicing and maintaining pre2010 systems

• Jan. 1, 2015: Allowed production/import will be at 

least 45% below 2010 level, as required by the 

Montreal Protocol 

• Jan. 1, 2020: No production or import of HCFC-22

—Used, recovered and recycled material can still be used

—Virgin material imported or produced before Jan. 1, 2020 

can still be used until 2030
2015 – 2019 Proposed Rule

• The 2015-2019 Proposed Rule has three 

approaches for setting the amount of HCFC-22 

consumption allowances each year

– 5-year Linear Drawdown

– 3-year Linear Drawdown

– Estimation Approach
Factors Considered

• Montreal Protocol Cap

• Clean Air Act requirements & use restrictions

• Servicing need for HCFC-22 equipment

– 46,000 MT modeled in 2015 (~100 million pounds)

– Modeled need is based on publically vetted 

parameters (installed equipment base, leak rate, 

charge size, etc.)

• Market conditions

– Existing HCFC-22 supply, uptake of alternatives, 

transition timelines, feasibility of retrofits for various 

end uses
- 

5,000 

10,000 

15,000 

20,000 

25,000 

2014 2015 2016 2017 2018 2019 2020

HCFC-22 Allowances (MT)

Comparison of EPA's Three Proposed Approaches for 

HCFC-22 

Estimation Approach (Maxmimum 

Amount)

5-year Linear Drawdown - Preferred 

3-year Linear Drawdown 

These 3 approaches are shown in Table 1 of the Proposed Rule
- 

5,000 

10,000 

15,000 

20,000 

25,000 

2014 2015 2016 2017 2018 2019 2020

MT HCFC

-22 Consumption

5-year Linear Drawdown Approach –

3 Allocation Options

Linear Drawdown - Highest

Linear Drawdown - Preferred 

Linear Drawdown - Lowest 
0

5,000

10,000

15,000

20,000

25,000

2014 2015 2016 2017 2018 2019 2020

HCFC-22 Allowances (MT)

3-year Linear Drawdown Approach –

2 Allocation Options

Higher Starting Point

Preferred
- 

5,000 

10,000 

15,000 

20,000 

25,000 

2014 2015 2016 2017 2018 2019 2020

HCFC-22 Allowances (MT)

Estimation Approach

Highest Allocation under Estimation Approach

Lowest Possible Allocation under Estimation 

Approach (based on EPA's proposal to account for 

up to 10,000 MT of existing inventory each year)
0

2,000

4,000

6,000

8,000

10,000

12,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

ODP

-weighted MT

HCFC Allocation Compared to Cap

HCFC-22 Allocation Other HCFCs MP Cap for all HCFCs

10% of Baseline

65% of Baseline

25% of Baseline

EPA’s Preferred Approach: 

5-year linear drawdown
Also in the Proposed Rule...

• HCFC-22 Production

– Maximum allowed under Protocol (~28,000 MT)

– Or, same as consumption

• Preferred Approaches for other HCFCs

– HCFC-123: 2,000 MT

• Maximum allowed under Clean Air Act section 605

– HCFC-124: 200 MT

– HCFC-142b: 35 MT, decreasing by 5 MT each year

• No HCFC-225ca/cb allowances

– Narrow de minimus exemption to allow continued use 

of existing inventory by owner of the inventory