[Federal Register Volume 89, Number 205 (Wednesday, October 23, 2024)]
[Notices]
[Pages 84583-84592]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-24444]


-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2021-0669; FRL-9116-06-OAR]


Phasedown of Hydrofluorocarbons: Notice of 2025 Allowance 
Allocations for Production and Consumption of Regulated Substances 
Under the American Innovation and Manufacturing Act of 2020, and Notice 
of Final Actions Establishing Administrative Consequences

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA) has issued calendar 
year 2025 allowances for the production and consumption of 
hydrofluorocarbons in accordance with the Agency's regulations. This 
issuance of allowances is undertaken pursuant to the American 
Innovation and Manufacturing Act, which directs the Environmental 
Protection Agency by October 1 of each calendar year to determine the 
quantity of production and consumption allowances for the following 
calendar year. In this notice, the Agency is also providing notice of 
separate Agency actions previously taken to establish administrative 
consequences for specific entities. These previously finalized actions 
withheld, retired, or revoked the identified entities' newly-issued 
calendar year 2025 allowances in accordance with the administrative 
consequence regulatory provisions.

FOR FURTHER INFORMATION CONTACT: Andy Chang, U.S. Environmental 
Protection Agency, Stratospheric Protection Division, telephone number: 
202-564-6658; email address: <a href="/cdn-cgi/l/email-protection#96f5fef7f8f1b8f7f8f2efd6f3e6f7b8f1f9e0"><span class="__cf_email__" data-cfemail="14777c757a733a757a706d547164753a737b62">[email protected]</span></a>. You may also visit 
EPA's website at https://www.epa.gov/climate-hfcs-reduction for further 
information.

SUPPLEMENTARY INFORMATION: Subsection (e)(2)(D)(i) of the American 
Innovation and Manufacturing Act of 2020 (AIM Act) directs the 
Environmental Protection Agency (EPA) to determine, by October 1 of 
each calendar year, the quantity of allowances for the production and 
consumption of regulated substances that may be used for the following 
calendar year. EPA has codified the production and consumption 
baselines and phasedown schedules for regulated substances in 40 CFR 
84.7. Under the phasedown schedule, for 2025, total production 
allowances may not exceed 229,521,263 metric tons of exchange value 
equivalent (MTEVe) and total consumption allowances may not exceed 
181,522,990 MTEVe.
    EPA regulations at 40 CFR part 84, subpart A, outline the process 
by which the Agency determines the number of allowances each entity is 
allocated. EPA allocated allowances consistent with the regulatory 
requirements, and has posted entity-specific allowance allocations on 
its website at https://www.epa.gov/climate-hfcs-reduction. An allowance 
allocated under the AIM Act does not constitute a property right and is 
a limited authorization for the production or consumption of a 
regulated substance.
    Note that while allowances may be transferred or conferred once 
they are allocated, they can only be expended to cover imports and 
production in the calendar year for which they are allocated. In other 
words, calendar year 2025 allowances may only be expended for 
production and import of bulk HFCs between January 1, 2025, and 
December 31, 2025.

Application-Specific Allowances

    EPA established the methodology for issuing application-specific 
allowances in the 2021 final rule titled Phasedown of 
Hydrofluorocarbons: Establishing the Allowance Allocation and Trading 
Program Under the American Innovation and Manufacturing Act (86 FR 
55116, Oct. 5, 2021) and codified the methodology for allocations in 40 
CFR 84.13. Because application-specific allowances can be expended to 
either produce or import HFCs, and application-specific allowances must 
be provided from within the overall annual production and consumption 
caps, EPA subtracts the amount of application-specific allowances 
allocated from both the production and consumption general allowance 
pools. EPA issues application-specific allowances to end users in five 
applications established by the AIM Act: propellants in metered dose 
inhalers (MDIs), defense sprays, structural composite preformed 
polyurethane foam for marine use and trailer use, etching of 
semiconductor material or wafers and the cleaning of

[[Page 84584]]

chemical vapor deposition chambers within the semiconductor 
manufacturing sector, and onboard aerospace fire suppression. 
Additionally, EPA issues application-specific allowances to the U.S. 
Department of Defense for mission-critical military end uses.
    Applying the methodology codified in 40 CFR 84.13, EPA allocated 
the number of application-specific allowances shown in Table 1.

           Table 1--Number of Calendar Year 2025 Application-Specific Allowances Allocated Per Entity
----------------------------------------------------------------------------------------------------------------
                                                                                           Application-specific
                     Entity                                    Application                  allowances (MTEVe)
                                                                                                allocated
----------------------------------------------------------------------------------------------------------------
Analog Devices.................................  Semiconductors........................                 15,998.9
Applied Materials..............................  Semiconductors........................                  2,290.4
Armstrong Pharmaceuticals......................  Propellants in MDIs...................                237,054.0
ASML US........................................  Semiconductors........................                  1,033.8
AstraZeneca Pharmaceuticals....................  Propellants in MDIs...................                  2,677.0
Aurobindo Pharma USA...........................  Propellants in MDIs...................                 23,196.2
Compsys........................................  Structural Composite Preformed                         16,066.0
                                                  Polyurethane Foam.
Defense Technology.............................  Defense Sprays........................                  5,297.2
Diodes Incorporated............................  Semiconductors........................                  1,410.2
General Electric...............................  Semiconductors........................                    147.7
GlaxoSmithKline................................  Propellants in MDIs...................                507,289.7
GlobalFoundries................................  Semiconductors........................                117,767.1
Hitachi High-Tech America......................  Semiconductors........................                    113.0
IBM Corporation................................  Semiconductors........................                    613.0
Intel Corporation..............................  Semiconductors........................                528,200.3
Invagen Pharmaceuticals........................  Propellants in MDIs...................                 59,385.2
Jireh Semiconductor............................  Semiconductors........................                  2,315.5
Keysight Technologies..........................  Semiconductors........................                    538.8
Kindeva Drug Delivery..........................  Propellants in MDIs...................                492,000.0
LA Semiconductor...............................  Semiconductors........................                  2,067.3
Lam Research Corp..............................  Semiconductors........................                 45,436.9
Lupin..........................................  Propellants in MDIs...................                 19,031.0
Magic Leap.....................................  Semiconductors........................                    516.9
Medtronic Tempe Campus.........................  Semiconductors........................                    455.1
Microchip Technology...........................  Semiconductors........................                  7,387.2
Micron Technology..............................  Semiconductors........................                 21,068.2
Newport Fab DBA TowerJazz......................  Semiconductors........................                  4,250.5
Northrop Grumman Corporation...................  Semiconductors........................                  2,793.6
NXP Semiconductor..............................  Semiconductors........................                 34,081.1
Polar Semiconductor............................  Semiconductors........................                  9,151.7
Proteng Distribution...........................  Onboard Aerospace Fire Suppression....                  6,723.4
Qorvo Texas....................................  Semiconductors........................                    470.0
Renesas Electronics America....................  Semiconductors........................                    940.1
Samsung Austin Semiconductor...................  Semiconductors........................                235,624.8
Security Equipment Corporation.................  Defense Sprays........................                 93,229.5
Semiconductor Components Industries DBA ON       Semiconductors........................                 35,794.8
 Semiconductor.
SkyWater Technology............................  Semiconductors........................                 10,463.5
Skyworks Solutions.............................  Semiconductors........................                  2,067.6
Taiwan Semiconductor Manufacturing Company       Semiconductors........................                120,485.4
 Arizona Corporation (TSMC Arizona Corporation).
Texas Instruments..............................  Semiconductors........................                214,219.4
The Research Foundation for The State            Semiconductors........................                 11,678.4
 University of New York at NY CREATES.
Tokyo Electron U.S. Holdings...................  Semiconductors........................                  5,123.9
Tower Semiconductor San Antonio................  Semiconductors........................                  3,290.4
TSMC Washington (formerly WaferTech)...........  Semiconductors........................                 10,384.5
UC San Diego...................................  Semiconductors........................                    940.1
UDAP Industries................................  Defense Sprays........................                110,727.8
Wabash National Corporation....................  Structural Composite Preformed                         49,299.5
                                                  Polyurethane Foam.
Wolfspeed......................................  Semiconductors........................                 15,779.7
X-FAB Texas....................................  Semiconductors........................                  1,262.5
Department of Defense..........................  Mission-critical Military End Uses....              6,238,033.5
                                                ----------------------------------------------------------------
    Total Issued...............................  All...................................              9,326,172.3
----------------------------------------------------------------------------------------------------------------

General Pool Allowances

    EPA's 2023 final rule titled Phasedown of Hydrofluorocarbons: 
Allowance Allocation Methodology for 2024 and Later Years (88 FR 46836, 
July 20, 2023) updated the methodology for how the Agency would issue 
production and consumption allowances for 2024 through 2028. These 
updates are codified in 40 CFR 84.9 (production) and 40 CFR 84.11 
(consumption), and EPA is issuing allowances to entities who meet the 
criteria in the regulations, including those who were previously issued 
consumption allowances as new market entrants pursuant to 40 CFR 84.15.

[[Page 84585]]

    Applying the methodology codified in 40 CFR 84.9, EPA allocated the 
number of production allowances shown in Table 2.

  Table 2--Number of Calendar Year 2025 Production Allowances Allocated
                               per Entity
------------------------------------------------------------------------
                                                         Production
                      Entity                        allowances allocated
                                                           (MTEVe)
------------------------------------------------------------------------
Application-specific allowances...................       \a\ 9,326,172.3
Arkema............................................          26,569,642.0
Chemours..........................................          49,257,821.8
Honeywell International...........................         111,508,876.7
Iofina Chemical...................................               1,142.5
Mexichem Fluor DBA Koura..........................          32,857,607.7
                                                   ---------------------
    Total Issued..................................         229,521,263.0
------------------------------------------------------------------------
\a\ See Table 1; this value corresponds to the total number of
  application-specific allowances allocated.

    Applying the methodology codified in 40 CFR 84.11, EPA allocated 
the number of consumption allowances shown in Table 3.

 Table 3--Number of Calendar Year 2025 Consumption Allowances Allocated
                               per Entity
------------------------------------------------------------------------
                                                  Consumption allowances
                     Entity                         allocated (MTEVe)
------------------------------------------------------------------------
Application-specific allowances................          \a\ 9,326,172.3
A.C.S. Reclamation & Recovery (Absolute Chiller                126,446.8
 Services).....................................
Ability Refrigerants...........................                126,446.8
ACT Commodities................................                     49.2
Advance Auto Parts.............................                452,130.1
Advanced Specialty Gases.......................                180,476.2
AFK & Co.......................................                122,233.6
AFS Cooling....................................                126,446.8
A-Gas..........................................              2,156,453.7
Air Liquide USA................................                315,346.4
American Air Components........................                126,446.8
Arkema.........................................             19,656,867.3
Artsen.........................................                649,992.4
Automart Distributors DBA Refrigerant Plus.....                126,446.8
AutoZone Parts.................................              1,278,314.6
AW Product Sales & Marketing...................                 76,455.4
Bluon..........................................                 21,165.2
CC Packaging...................................                122,653.4
Chemours.......................................             21,679,708.6
Chemp Technology...............................                126,446.8
ChemPenn.......................................                 14,060.4
ComStar International..........................                227,930.8
Creative Solution..............................                126,446.8
Cross World Group..............................                126,446.8
Daikin America.................................              1,974,152.3
EDX Industry...................................                363,578.9
Electronic Fluorocarbons.......................                 65,968.2
Fireside Holdings DBA American Refrigerants....                126,433.2
First Continental International................                486,962.7
FluoroFusion Specialty Chemicals...............              1,614,609.9
Freskoa USA....................................                126,446.8
GlaxoSmithKline................................                340,497.3
Golden Refrigerant.............................                126,446.8
Harp USA.......................................                484,265.5
Honeywell International........................             52,089,837.5
Hudson Technologies............................              2,129,502.6
Hungry Bear....................................                126,446.8
ICool USA......................................              2,155,102.6
IGas Holdings..................................             16,514,965.1
Iofina Chemical................................                    800.3
Kidde-Fenwal...................................                126,446.8
Lenz Sales & Distribution......................                702,334.8
Lina Trade.....................................                126,446.8
Linde..........................................                336,839.5
Matheson Tri-Gas...............................                 21,582.0
MEK Chemical Corporation.......................                 52,517.1
Meraki Group...................................                126,446.8

[[Page 84586]]

 
Metalcraft.....................................                101,789.7
Mexichem Fluor DBA Koura.......................             16,117,355.6
Mondy Global...................................                201,598.7
National Refrigerants..........................             12,528,840.8
Nature Gas Import and Export...................                518,455.3
North American Refrigerants....................                126,446.8
O23 Energy Plus................................                126,446.8
Perfect Score Too DBA Perfect Cycle............                 23,946.5
Reclamation Technologies.......................                378,076.0
Resonac America................................                 42,007.0
RGAS...........................................              2,893,842.3
RMS of Georgia.................................              1,042,507.0
Sciarra Laboratories...........................                  5,500.4
SDS Refrigerant Services.......................                126,446.8
Solvay Fluorides...............................                697,362.9
Summit Refrigerants............................                126,446.8
SynAgile Corporation...........................                    711.3
Technical Chemical.............................              2,160,215.3
TradeQuim......................................                126,446.8
Transocean Offshore Deepwater Drilling.........                     10.6
Tulstar Products...............................                464,363.5
Tyco Fire Products.............................                126,446.8
USSC Acquisition Corp..........................                 83,107.8
Walmart........................................              1,442,587.7
Waysmos USA....................................                354,712.2
Wego Chemical Group............................                 35,773.6
Weitron........................................              4,009,333.5
Wesco HMB......................................                126,446.8
Wilhelmsen Ships Service.......................                 25,550.4
                                                ------------------------
    Total Issued...............................            181,522,990.0
------------------------------------------------------------------------
\a\ See Table 1; this value corresponds to the total number of
  application-specific allowances allocated.

Administrative Consequences

    Separate from the allocation of calendar year 2025 allowances, EPA 
hereby provides notice that it also took final actions establishing 
administrative consequences for specific entities. Each action, which 
EPA took through a letter issued to the relevant entity, is a separate 
final action informing the recipient entity of an administrative 
consequence. The requirements pertaining to administrative consequences 
are codified in 40 CFR 84.35. Under this provision, EPA can retire, 
revoke, or withhold the allocation of allowances, or ban an entity from 
receiving, transferring, or conferring allowances. A retired allowance 
is one that must go unused and expire at the end of the year; a revoked 
allowance is one that EPA takes back from an allowance holder and 
redistributes to all the other eligible allowance holders; and a 
withheld allowance is one that is retained by the Agency until an 
allowance holder that has failed to meet a regulatory requirement comes 
back into compliance, at which point EPA allocates it to the allowance 
holder. More information on EPA's approach to administrative 
consequences can be found at 86 FR 55168.
    EPA finalized administrative consequences for certain entities that 
were allocated application-specific allowances, listed in Table 1 for 
calendar year 2025. These entities failed to submit auditing reports as 
required in 40 CFR 84.33 and therefore EPA has withheld a portion of 
their allowances until the missing reports are submitted and 
subsequently verified by EPA: ASML US,\1\ Proteng Distribution, and 
Wolfspeed. These final actions became effective on September 30, 2024, 
and are summarized below in Table 4.
---------------------------------------------------------------------------

    \1\ ASML US submitted an auditing report on September 27, 2024, 
and the Agency is reviewing that submission.

      Table 4--Summary of Administrative Consequences Taken Pursuant to 40 CFR 84.35 for Calendar Year 2025
                          Application-Specific Allowances, Effective September 30, 2024
----------------------------------------------------------------------------------------------------------------
                                       Number of affected        Administrative
               Entity                  allowances (MTEVe)      consequence action             Reasoning
----------------------------------------------------------------------------------------------------------------
ASML US \a\.........................                 206.8  Withhold...............  Failure to submit auditing
                                                                                      report as required in 40
                                                                                      CFR 84.33.
Proteng Distribution................               1,344.7  Withhold...............  Failure to submit auditing
                                                                                      report as required in 40
                                                                                      CFR 84.33.

[[Page 84587]]

 
Wolfspeed...........................               3,155.9  Withhold...............  Failure to submit auditing
                                                                                      report as required in 40
                                                                                      CFR 84.33.
----------------------------------------------------------------------------------------------------------------
\a\ ASML US submitted an auditing report on September 27, 2024, and the Agency is reviewing that submission.

    EPA finalized additional administrative consequences for certain 
entities that were allocated consumption allowances, as listed in Table 
3 for calendar year 2025. These final actions affecting calendar year 
2025 allowances became effective on September 30, 2024. Specifically, 
the following entities failed to submit auditing reports as required in 
40 CFR 84.33 and therefore EPA has withheld a portion of their 
consumption allowances until the missing reports are filed and verified 
by EPA: Solvay Fluorides and Wilhelmsen Ships Service. The following 
entities imported regulated HFCs without expending the requisite number 
of consumption allowances at the time of import and therefore EPA has 
retired and/or revoked consumption allowances commensurate with the 
quantities of regulated substances imported without allowances: AFK & 
Co. and AutoZone Parts. Lastly, Wesco HMB sold, distributed, or offered 
for sale or distribution, regulated HFCs that had previously been 
imported in violation of EPA's import requirements contained in 40 CFR 
84.5(b). A summary of these administrative consequences is included in 
Table 5.

   Table 5--Summary of Administrative Consequences Pursuant to 40 CFR 84.35 for Calendar Year 2025 Consumption
                                    Allowances, Effective September 30, 2024
----------------------------------------------------------------------------------------------------------------
                                       Number of affected        Administrative
               Entity                  allowances  (MTEVe)     consequence action             Reasoning
----------------------------------------------------------------------------------------------------------------
AFK & Co............................                 941.4  Retire                   Imported regulated HFCs
                                                 \a\ 706.1  Revoke                    without expending
                                                                                      requisite number of
                                                                                      allowances.
AutoZone Parts......................              21,763.1  Retire                   Imported regulated HFCs
                                              \b\ 10,881.6  Revoke                    without expending
                                                                                      requisite number of
                                                                                      allowances.
Wesco HMB...........................               5,432.1  Retire                   Sold, distributed, or
                                               \c\ 2,716.1  Revoke                    offered for sale or
                                                                                      distribution regulated
                                                                                      HFCs that were imported
                                                                                      without the requisite
                                                                                      expenditure of allowances.
Solvay Fluorides....................             139,472.6  Withhold                 Failure to submit auditing
                                                                                      report as required in 40
                                                                                      CFR 84.33.
Wilhelmsen Ships Service............               5,110.1  Withhold                 Failure to submit auditing
                                                                                      report as required in 40
                                                                                      CFR 84.33.
----------------------------------------------------------------------------------------------------------------
\a\ This value corresponds to 75% of the full amount of consumption without requisite allowances at the time of
  import. As stated in the HFC Allocation Framework Rule (86 FR 55116, Oct. 5, 2021), EPA explained it would
  take a 50% premium in first instances of administrative consequences. However, EPA has previously finalized
  administrative consequences for AFK & Co. for the same reasoning.
\b\ As stated in the HFC Allocation Framework Rule (86 FR 55116, Oct. 5, 2021), EPA explained it would take a
  50% premium in first instances of administrative consequences. This value corresponds to 50% of the full
  amount of consumption without requisite allowances at the time of import.
\c\ As stated in the HFC Allocation Framework Rule (86 FR 55116, Oct. 5, 2021), EPA explained it would take a
  50% premium in first instances of administrative consequences. This value corresponds to 50% of the full
  amount of regulated HFCs on a MTEVe-weighted basis that were sold, distributed, or offered for sale or
  distribution.

    The Agency also finalized administrative consequences for Fike 
Corporation and Firetrace USA. These entities have historically 
submitted requests for additional consumption allowances (RACAs) under 
EPA's regulations contained in 40 CFR 84.17, and failed to submit 
auditing reports as required in 40 CFR 84.33. Therefore, EPA will 
withhold a portion of any calendar year 2025 consumption allowances 
issued to these entities until the missing reports are submitted and 
subsequently verified by EPA. A summary is reflected below in Table 6.

     Table 6--Summary of Administrative Consequences Pursuant to 40 CFR 84.35 for RACA Submitters, Effective
                                               September 30, 2024
----------------------------------------------------------------------------------------------------------------
                                                                               Administrative
            Entity               Number of affected allowances    Applicable     consequence        Reasoning
                                            (MTEVe)                year(s)         action
----------------------------------------------------------------------------------------------------------------
Fike Corporation..............  20% of granted RACAs...........         2025          Withhold  Failure to
                                                                                                 submit auditing
                                                                                                 report as
                                                                                                 required in 40
                                                                                                 CFR 84.33.

[[Page 84588]]

 
Firetrace USA.................  20% of granted RACAs...........         2025          Withhold  Failure to
                                                                                                 submit auditing
                                                                                                 report as
                                                                                                 required in 40
                                                                                                 CFR 84.33.
----------------------------------------------------------------------------------------------------------------

    A comprehensive summary of all finalized administrative 
consequences with an effective date of September 30, 2024, that affect 
calendar year 2025 HFC allowances is contained in Table 7.

Table 7--Calendar Year 2025 Allowances Adjusted Through Finalized Administrative Consequences Pursuant to 40 CFR
                                                      84.35
----------------------------------------------------------------------------------------------------------------
                                                                     Administrative         Number of affected
                Entity                      Allowance type         consequence action      allowances  (MTEVe)
----------------------------------------------------------------------------------------------------------------
AFK & Co.............................  Consumption............  Retire.................                    941.4
                                                                Revoke.................                    706.1
ASML US \a\..........................  Application-specific...  Withhold...............                    206.8
AutoZone Parts.......................  Consumption............  Retire.................                 21,763.1
                                                                Revoke.................                 10,881.6
Fike Corporation.....................  Consumption............  Withhold...............     20% of granted RACAs
Firetrace USA........................  Consumption............  Withhold...............     20% of granted RACAs
Proteng Distribution.................  Application-specific...  Withhold...............                  1,344.7
Solvay Fluorides.....................  Consumption............  Withhold...............                139,472.6
Wesco HMB............................  Consumption............  Retire.................                  5,432.1
                                                                Revoke.................                  2,716.1
Wilhelmsen Ships Service.............  Consumption............  Withhold...............                  5,110.1
Wolfspeed............................  Application-specific...  Withhold...............                  3,155.9
----------------------------------------------------------------------------------------------------------------
\a\ ASML US submitted an auditing report on September 27, 2024, and the Agency is reviewing that submission.

    In addition to the administrative consequences listed in Table 7, 
142,694.8 MTEVe of consumption allowances were retired and 509,608.2 
MTEVe were revoked, consistent with previously finalized administrative 
consequences described in Phasedown of Hydrofluorocarbons: Notice of 
2024 Allowance Allocations for Production and Consumption of Regulated 
Substances Under the American Innovation and Manufacturing Act of 2020, 
and Notice of Final Administrative Consequences (88 FR 72060, Oct. 19, 
2023). The entities subject to those prior actions include American Air 
Components, Bluon, Honeywell International, and Resonac America.

Adjustments to Application-Specific Allowances

    As described above, certain entities listed in Table 1 have had a 
portion of their calendar year 2025 allowances withheld for not 
submitting the auditing report required in 40 CFR 84.33. These 
allowances will be withheld until the missing reports are submitted and 
subsequently verified by EPA. Accordingly, Table 8 shows the number of 
application-specific allowances available to each entity as a result of 
finalized administrative consequences.

  Table 8--Number of Calendar Year 2025 Application-Specific Allowances
      Available to Each Entity as of October 1, 2024, Adjusted for
                       Administrative Consequences
------------------------------------------------------------------------
                                                  Available application-
                                                   specific allowances
            Entity                Application     (MTEVe), adjusting for
                                                      administrative
                                                       consequences
------------------------------------------------------------------------
Analog Devices...............  Semiconductors..                 15,998.9
Applied Materials............  Semiconductors..                  2,290.4
Armstrong Pharmaceuticals....  Propellants in                  237,054.0
                                MDIs.
ASML US \a\..................  Semiconductors..                    827.0
AstraZeneca Pharmaceuticals..  Propellants in                    2,677.0
                                MDIs.
Aurobindo Pharma USA.........  Propellants in                   23,196.2
                                MDIs.
Compsys......................  Structural                       16,066.0
                                Composite
                                Preformed
                                Polyurethane
                                Foam.
Defense Technology...........  Defense Sprays..                  5,297.2
Diodes Incorporated..........  Semiconductors..                  1,410.2
General Electric.............  Semiconductors..                    147.7
GlaxoSmithKline..............  Propellants in                  507,289.7
                                MDIs.

[[Page 84589]]

 
GlobalFoundries..............  Semiconductors..                117,767.1
Hitachi High-Tech America....  Semiconductors..                    113.0
IBM Corporation..............  Semiconductors..                    613.0
Intel Corporation............  Semiconductors..                528,200.3
Invagen Pharmaceuticals......  Propellants in                   59,385.2
                                MDIs.
Jireh Semiconductor..........  Semiconductors..                  2,315.5
Keysight Technologies........  Semiconductors..                    538.8
Kindeva Drug Delivery........  Propellants in                  492,000.0
                                MDIs.
LA Semiconductor.............  Semiconductors..                  2,067.3
Lam Research Corp............  Semiconductors..                 45,436.9
Lupin........................  Propellants in                   19,031.0
                                MDIs.
Magic Leap...................  Semiconductors..                    516.9
Medtronic Tempe Campus.......  Semiconductors..                    455.1
Microchip Technology.........  Semiconductors..                  7,387.2
Micron Technology............  Semiconductors..                 21,068.2
Newport Fab DBA TowerJazz....  Semiconductors..                  4,250.5
Northrop Grumman Corporation.  Semiconductors..                  2,793.6
NXP Semiconductor............  Semiconductors..                 34,081.1
Polar Semiconductor..........  Semiconductors..                  9,151.7
Proteng Distribution.........  Onboard                           5,378.7
                                Aerospace Fire
                                Suppression.
Qorvo Texas..................  Semiconductors..                    470.0
Renesas Electronics America..  Semiconductors..                    940.1
Samsung Austin Semiconductor.  Semiconductors..                235,624.8
Security Equipment             Defense Sprays..                 93,229.5
 Corporation.
Semiconductor Components       Semiconductors..                 35,794.8
 Industries DBA ON
 Semiconductor.
SkyWater Technology..........  Semiconductors..                 10,463.5
Skyworks Solutions...........  Semiconductors..                  2,067.6
Taiwan Semiconductor           Semiconductors..                120,485.4
 Manufacturing Company
 Arizona Corporation (TSMC
 Arizona Corporation).
Texas Instruments............  Semiconductors..                214,219.4
The Research Foundation for    Semiconductors..                 11,678.4
 The State University of New
 York at NY CREATES.
Tokyo Electron U.S. Holdings,  Semiconductors..                  5,123.9
 Inc..
Tower Semiconductor San        Semiconductors..                  3,290.4
 Antonio.
TSMC Washington (formerly      Semiconductors..                 10,384.5
 WaferTech).
UC San Diego.................  Semiconductors..                    940.1
UDAP Industries..............  Defense Sprays..                110,727.8
Wabash National Corporation..  Structural                       49,299.5
                                Composite
                                Preformed
                                Polyurethane
                                Foam.
Wolfspeed....................  Semiconductors..                 12,623.8
X-FAB Texas..................  Semiconductors..                  1,262.5
Department of Defense........  Mission-critical              6,238,033.5
                                Military End
                                Uses.
                                                ------------------------
    Total Available..........  All.............              9,321,464.9
------------------------------------------------------------------------
\a\ ASML US submitted an auditing report on September 27, 2024, and the
  Agency is reviewing that submission.

Adjustments to Consumption Allowances

    An entity is eligible to receive redistributed allowances if they 
were not subject to administrative consequences that took effect on the 
same day (except entities that had allowances withheld). For example, 
if EPA revoked 50 MTEVe allowances from company A and 50 MTEVe 
allowances from company B, effective on the same day, EPA's 
redistribution of that single pool of 100 MTEVe allowances would go to 
all general pool allowances holders except company A and company B. 
This applies regardless of whether the revocation happens in one year 
or over multiple years. However, entities who only had allowances 
withheld by the Agency as a result of failure to comply with the 
auditing requirements as contained in 40 CFR 84.33 were eligible to 
receive allowances that were redistributed.
    For 2025, the total number of revoked and redistributed allowances 
is 523,912.0 MTEVe, which are being apportioned to eligible consumption 
allowance holders based on their relative market share, and the total 
number of retired allowances in 2025 is 170,831.4 MTEVe. These amounts 
are the result of administrative consequences with two distinct 
effective dates. For more information on the administrative 
consequences finalized in 2023 that impact calendar year 2025 
consumption allowances, see Phasedown of Hydrofluorocarbons: Notice of 
2024 Allowance Allocations for Production and Consumption of Regulated 
Substances Under the American Innovation and Manufacturing Act of 2020, 
and Notice of Final Administrative Consequences (88 FR 72060, Oct. 19, 
2023).
    Table 9 reflects consumption allowance totals available to each 
entity as of October 1, 2024, after taking into account the 
administrative

[[Page 84590]]

consequences and eligibility described elsewhere in this notice.

   Table 9--Total Number of Calendar Year 2025 Consumption Allowances
      Available to Each Entity as of October 1, 2024, Adjusted for
                       Administrative Consequences
------------------------------------------------------------------------
                                                 Available consumption
                                                 allowances,  adjusted
                    Entity                       for all administrative
                                                 consequences  (MTEVe)
------------------------------------------------------------------------
Application-specific allowances..............            \a\ 9,321,464.9
A.C.S. Reclamation & Recovery (Absolute                        127,006.0
 Chiller Services)...........................
Ability Refrigerants.........................                  127,006.0
ACT Commodities..............................                       49.4
Advance Auto Parts...........................                  454,129.5
Advanced Specialty Gases.....................                  181,274.3
AFK & Co.....................................                  120,586.1
AFS Cooling..................................                  127,006.0
A-Gas........................................                2,165,990.0
Air Liquide USA..............................                  316,740.9
American Air Components \b\..................                        0.0
Arkema.......................................               19,743,794.0
Artsen.......................................                  650,046.9
Automart Distributors DBA Refrigerant Plus...                  127,006.0
AutoZone Parts...............................                1,251,215.7
AW Product Sales & Marketing.................                   76,793.5
Bluon \b\....................................                        0.0
CC Packaging.................................                  123,195.8
Chemours.....................................               21,775,580.8
Chemp Technology.............................                  127,006.0
ChemPenn.....................................                   14,122.6
ComStar International........................                  228,938.8
Creative Solution............................                  127,006.0
Cross World Group............................                  127,006.0
Daikin America...............................                1,982,882.5
EDX Industry.................................                  365,186.7
Electronic Fluorocarbons.....................                   65,973.7
Fireside Holdings DBA American Refrigerants..                  126,992.3
First Continental International..............                  489,116.1
FluoroFusion Specialty Chemicals.............                1,614,745.2
Freskoa USA..................................                  127,006.0
GlaxoSmithKline..............................                  342,003.0
Golden Refrigerant...........................                  127,006.0
Harp USA.....................................                  486,407.0
Honeywell International......................               51,631,535.0
Hudson Technologies..........................                2,138,919.7
Hungry Bear..................................                  127,006.0
ICool USA....................................                2,164,632.9
IGas Holdings................................               16,587,997.7
Iofina Chemical..............................                      803.9
Kidde-Fenwal.................................                  127,006.0
Lenz Sales & Distribution....................                  705,440.7
Lina Trade...................................                  127,006.0
Linde........................................                  338,329.0
Matheson Tri-Gas.............................                   21,677.4
MEK Chemical Corporation.....................                   52,749.3
Meraki Group.................................                  127,006.0
Metalcraft...................................                  102,239.8
Mexichem Fluor DBA Koura.....................               16,188,629.9
Mondy Global.................................                  202,490.2
National Refrigerants........................               12,584,245.9
Nature Gas Import and Export.................                  520,748.2
North American Refrigerants..................                  127,006.0
O23 Energy Plus..............................                  127,006.0
Perfect Score Too DBA Perfect Cycle..........                   24,052.4
Reclamation Technologies.....................                  379,747.9
Resonac America \b\..........................                        0.0
RGAS.........................................                2,906,639.4
RMS of Georgia...............................                1,047,117.2
Sciarra Laboratories.........................                    5,524.8
SDS Refrigerant Services.....................                  127,006.0
Solvay Fluorides.............................                  560,974.1
Summit Refrigerants..........................                  127,006.0

[[Page 84591]]

 
SynAgile Corporation.........................                      714.5
Technical Chemical...........................                2,169,768.2
TradeQuim....................................                  127,006.0
Transocean Offshore Deepwater Drilling.......                       10.6
Tulstar Products.............................                  466,417.0
Tyco Fire Products...........................                  127,006.0
USSC Acquisition Corp........................                   83,475.4
Walmart......................................                1,448,967.1
Waysmos USA..................................                  356,280.8
Wego Chemical Group..........................                   35,931.8
Weitron......................................                4,027,063.6
Wesco HMB....................................                  118,847.2
Wilhelmsen Ships Service.....................                   20,553.2
------------------------------------------------------------------------
\a\ See Table 8; this value corresponds to the total number of
  application-specific allowances available on October 1, 2024, after
  adjusting for administrative consequences.
\b\ While these entities were eligible for revoked and redistributed
  consumption allowances with an effective date of September 30, 2024,
  the Agency has previously finalized administrative consequences for
  them stating that ``[EPA] [w]ill retire and revoke allowances until
  the full administrative consequence is covered'' (88 FR 72060, Oct.
  19, 2023).

Judicial Review

    The AIM Act provides that certain sections of the Clean Air Act 
(CAA) ``shall apply to'' the AIM Act and actions ``promulgated by the 
Administrator of [EPA] pursuant to [the AIM Act] as though [the AIM 
Act] were expressly included in title VI of [the CAA].'' 42 U.S.C. 
7675(k)(1)(C). Among the applicable sections of the CAA is section 307, 
which includes provisions governing judicial review. 42 U.S.C. 
7607(b)(1). Section 307(b)(1) provides, in part, that petitions for 
review must only be filed in the United States Court of Appeals for the 
District of Columbia Circuit: (i) When the agency action consists of 
``nationally applicable regulations promulgated, or final actions 
taken, by the Administrator,'' or (ii) when such action is locally or 
regionally applicable, but ``such action is based on a determination of 
nationwide scope or effect and if in taking such action the 
Administrator finds and publishes that such action is based on such a 
determination.'' For locally or regionally applicable final actions, 
the CAA reserves to the EPA complete discretion whether to invoke the 
exception in (ii).
    The issuance of calendar year 2025 allowances for the production 
and consumption of hydrofluorocarbons herein noticed is ``nationally 
applicable'' within the meaning of CAA section 307(b)(1). The AIM Act 
imposes a national cap on the total number of allowances available for 
each year for all entities nationwide. 42 U.S.C. 7675(e)(2)(B)-(D). For 
2025, there was a national pool of 229,521,263 production allowances 
and 181,522,990 consumption allowances available to distribute. The 
allocation action noticed herein distributed that finite set of 
allowances consistent with the methodology EPA established in the 
nationally applicable framework rule. As such, the allowance allocation 
is the division and assignment of a single, nationwide pool of HFC 
allowances to entities across the country according to the uniform, 
national methodology established in EPA's regulations. Each entity's 
allowance allocation is a relative share of that pool; thus, any 
additional allowances awarded to one entity directly affects the 
allocations to others.
    In the alternative, to the extent a court finds the final action to 
be locally or regionally applicable, the Administrator is exercising 
the complete discretion afforded to him under the CAA to make and 
publish a finding that the allocation action is based on a 
determination of ``nationwide scope or effect'' within the meaning of 
CAA section 307(b)(1).\2\ In deciding to invoke this exception, the 
Administrator has taken into account a number of policy considerations, 
including his judgment regarding the benefit of obtaining the D.C. 
Circuit's authoritative centralized review, rather than allowing 
development of the issue in other contexts, in order to ensure 
consistency in the Agency's approach to allocation of allowances in 
accordance with EPA's national regulations in 40 CFR part 84. The final 
action treats all affected entities consistently in how the 40 CFR part 
84 regulations are applied. The allowance allocation is the division 
and assignment of a single, nationwide pool of HFC allowances to 
entities across the country according to the uniform, national 
methodology established in EPA's regulations, and each entity's 
allowance allocation is a relative share of that pool; thus, any 
additional allowances awarded to one entity directly affect the 
allocations to others. The Administrator finds that this is a matter on 
which national uniformity is desirable to take advantage of the D.C. 
Circuit's administrative law expertise and facilitate the orderly 
development of the basic law under the AIM Act and EPA's implementing 
regulations. The Administrator also finds that consolidated review of 
the action in the D.C. Circuit will avoid piecemeal litigation in the 
regional circuits, further judicial economy, and eliminate the risk of 
inconsistent results for different regulated entities. The 
Administrator also finds that a nationally consistent approach to the 
allocation of allowances constitutes the best use of agency resources. 
The Administrator is publishing his finding that the allocation action 
is based on a determination of nationwide scope or effect in the 
Federal Register as part of this notice.
---------------------------------------------------------------------------

    \2\ In the report on the 1977 Amendments that revised section 
307(b)(1) of the CAA, Congress noted that the Administrator's 
determination that the ``nationwide scope or effect'' exception 
applies would be appropriate for any action that has a scope or 
effect beyond a single judicial circuit. See H.R. Rep. No. 95-294 at 
323, 324, reprinted in 1977 U.S.C.C.A.N. 1402-03.

---------------------------------------------------------------------------

[[Page 84592]]

    For these reasons, the final action of the Agency allocating 
hydrofluorocarbon allowances to entities located throughout the country 
is nationally applicable or, alternatively, the Administrator is 
exercising the complete discretion afforded to him by the CAA and finds 
that the final action is based on a determination of nationwide scope 
or effect for purposes of CAA section 307(b)(1) and is hereby 
publishing that finding in the Federal Register.
    Under section 307(b)(1) of the CAA, petitions for judicial review 
of this allocation action must be filed in the United States Court of 
Appeals for the District of Columbia Circuit by December 23, 2024.
    Each adjudicatory action establishing an administrative consequence 
as described in this notice is a final action previously taken by EPA. 
Under section 307(b)(1) of the CAA, any petition for judicial review of 
such a final action must be filed in the United States Court of Appeals 
for the appropriate circuit by December 23, 2024.
    Filing a petition for reconsideration by the Administrator does not 
affect the finality of any action noticed herein for purposes of 
judicial review nor does it extend the time within which a petition for 
judicial review may be filed and shall not postpone the effectiveness 
of such action. The final actions described herein may not be 
challenged later in proceedings to enforce their requirements. 42 
U.S.C. 7607(b)(2).

Paul M. Gunning,
Director, Office of Atmospheric Protection.
[FR Doc. 2024-24444 Filed 10-22-24; 8:45 am]
BILLING CODE 6560-50-P


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