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 Environmental Protection Agency [EPA-HQ-OAR-2021-0669; FRL-9116-06-OAR]
 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: 
                        *chang.andy@epa.gov.*
                         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 
                    ( print 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
Entity
Application
Application-specific
                             allowances 
                             (MTEVe) allocatedAnalog Devices
Semiconductors
15,998.9Applied Materials
Semiconductors
2,290.4Armstrong Pharmaceuticals
Propellants in MDIs
237,054.0ASML US
Semiconductors
1,033.8AstraZeneca Pharmaceuticals
Propellants in MDIs
2,677.0Aurobindo Pharma USA
Propellants in MDIs
23,196.2Compsys
Structural Composite Preformed Polyurethane Foam
16,066.0Defense Technology
Defense Sprays
5,297.2Diodes Incorporated
Semiconductors
1,410.2General Electric
Semiconductors
147.7GlaxoSmithKline
Propellants in MDIs
507,289.7GlobalFoundries
Semiconductors
117,767.1Hitachi High-Tech America
Semiconductors
113.0IBM Corporation
Semiconductors
613.0Intel Corporation
Semiconductors
528,200.3Invagen Pharmaceuticals
Propellants in MDIs
59,385.2Jireh Semiconductor
Semiconductors
2,315.5Keysight Technologies
Semiconductors
538.8Kindeva Drug Delivery
Propellants in MDIs
492,000.0LA Semiconductor
Semiconductors
2,067.3Lam Research Corp.
Semiconductors
45,436.9Lupin
Propellants in MDIs
19,031.0Magic Leap
Semiconductors
516.9Medtronic Tempe Campus
Semiconductors
455.1Microchip Technology
Semiconductors
7,387.2Micron Technology
Semiconductors
21,068.2Newport Fab DBA TowerJazz
Semiconductors
4,250.5Northrop Grumman Corporation
Semiconductors
2,793.6NXP Semiconductor
Semiconductors
34,081.1Polar Semiconductor
Semiconductors
9,151.7Proteng Distribution
Onboard Aerospace Fire Suppression
6,723.4Qorvo Texas
Semiconductors
470.0Renesas Electronics America
Semiconductors
940.1Samsung Austin Semiconductor
Semiconductors
235,624.8Security Equipment Corporation
Defense Sprays
93,229.5Semiconductor Components Industries DBA ON Semiconductor
Semiconductors
35,794.8SkyWater Technology
Semiconductors
10,463.5Skyworks Solutions
Semiconductors
2,067.6Taiwan Semiconductor Manufacturing Company Arizona Corporation (TSMC Arizona Corporation)
Semiconductors
120,485.4Texas Instruments
Semiconductors
214,219.4The Research Foundation for The State University of New York at NY CREATES
Semiconductors
11,678.4Tokyo Electron U.S. Holdings
Semiconductors
5,123.9Tower Semiconductor San Antonio
Semiconductors
3,290.4TSMC Washington (formerly WaferTech)
Semiconductors
10,384.5UC San Diego
Semiconductors
940.1UDAP Industries
Defense Sprays
110,727.8Wabash National Corporation
Structural Composite Preformed Polyurethane Foam
49,299.5Wolfspeed
Semiconductors
15,779.7X-FAB Texas
Semiconductors
1,262.5Department of Defense
Mission-critical Military End Uses
6,238,033.5Total 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.
                    ( print 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
Entity
Production allowances
                             allocated 
                             (MTEVe)Application-specific allowances
a
                             9,326,172.3Arkema
26,569,642.0Chemours
49,257,821.8Honeywell International
111,508,876.7Iofina Chemical
1,142.5Mexichem Fluor DBA Koura
32,857,607.7Total Issued
229,521,263.0a
                         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
Entity
Consumption allowances
                             allocated 
                             (MTEVe)Application-specific allowances
a
                             9,326,172.3A.C.S. Reclamation & Recovery (Absolute Chiller Services)
126,446.8Ability Refrigerants
126,446.8ACT Commodities
49.2Advance Auto Parts
452,130.1Advanced Specialty Gases
180,476.2AFK & Co.
122,233.6AFS Cooling
126,446.8A-Gas
2,156,453.7Air Liquide USA
315,346.4American Air Components
126,446.8Arkema
19,656,867.3Artsen
649,992.4Automart Distributors DBA Refrigerant Plus
126,446.8AutoZone Parts
1,278,314.6AW Product Sales & Marketing
76,455.4Bluon
21,165.2CC Packaging
122,653.4Chemours
21,679,708.6Chemp Technology
126,446.8ChemPenn
14,060.4ComStar International
227,930.8Creative Solution
126,446.8Cross World Group
126,446.8Daikin America
1,974,152.3EDX Industry
363,578.9Electronic Fluorocarbons
65,968.2Fireside Holdings DBA American Refrigerants
126,433.2First Continental International
486,962.7FluoroFusion Specialty Chemicals
1,614,609.9Freskoa USA
126,446.8GlaxoSmithKline
340,497.3Golden Refrigerant
126,446.8Harp USA
484,265.5Honeywell International
52,089,837.5Hudson Technologies
2,129,502.6Hungry Bear
126,446.8ICool USA
2,155,102.6IGas Holdings
16,514,965.1Iofina Chemical
800.3Kidde-Fenwal
126,446.8Lenz Sales & Distribution
702,334.8Lina Trade
126,446.8Linde
336,839.5Matheson Tri-Gas
21,582.0MEK Chemical Corporation
52,517.1Meraki Group
126,446.8( print page 84586)Metalcraft
101,789.7Mexichem Fluor DBA Koura
16,117,355.6Mondy Global
201,598.7National Refrigerants
12,528,840.8Nature Gas Import and Export
518,455.3North American Refrigerants
126,446.8O23 Energy Plus
126,446.8Perfect Score Too DBA Perfect Cycle
23,946.5Reclamation Technologies
378,076.0Resonac America
42,007.0RGAS
2,893,842.3RMS of Georgia
1,042,507.0Sciarra Laboratories
5,500.4SDS Refrigerant Services
126,446.8Solvay Fluorides
697,362.9Summit Refrigerants
126,446.8SynAgile Corporation
711.3Technical Chemical
2,160,215.3TradeQuim
126,446.8Transocean Offshore Deepwater Drilling
10.6Tulstar Products
464,363.5Tyco Fire Products
126,446.8USSC Acquisition Corp
83,107.8Walmart
1,442,587.7Waysmos USA
354,712.2Wego Chemical Group
35,773.6Weitron
4,009,333.5Wesco HMB
126,446.8Wilhelmsen Ships Service
25,550.4Total Issued
181,522,990.0a
                         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. Table 4—Summary of Administrative Consequences Taken Pursuant to 40 CFR 84.35 for Calendar Year 2025 Application-Specific Allowances, Effective September 30, 2024
Entity
Number of affected
                             allowances 
                             (MTEVe)
Administrative
                             consequence action
ReasoningASML 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.( print 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
Entity
Number of affected 
                             allowances  
                             (MTEVe)
Administrative consequence action
ReasoningAFK & Co.
941.4
                             a
                                 706.1
Retire
                             Revoke
Imported regulated HFCs without expending requisite number of allowances.AutoZone Parts
21,763.1
                             b
                                 10,881.6
Retire
                             Revoke
Imported regulated HFCs without expending requisite number of allowances.Wesco HMB
5,432.1
                             c
                                 2,716.1
Retire
                             Revoke
Sold, distributed, or 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
Entity
Number of affected allowances
                             (MTEVe)
Applicable year(s)
Administrative consequence 
                             action
ReasoningFike Corporation
20% of granted RACAs
2025
Withhold
Failure to submit auditing report as required in 40 CFR 84.33.( print 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
Entity
Allowance type
Administrative consequence action
Number of affected 
                             allowances  
                             (MTEVe)AFK & Co.
Consumption
Retire
941.4Revoke
706.1ASML US a
Application-specific
Withhold
206.8AutoZone Parts
Consumption
Retire
21,763.1Revoke
10,881.6Fike Corporation
Consumption
Withhold
20% of granted RACAsFiretrace USA
Consumption
Withhold
20% of granted RACAsProteng Distribution
Application-specific
Withhold
1,344.7Solvay Fluorides
Consumption
Withhold
139,472.6Wesco HMB
Consumption
Retire
5,432.1Revoke
2,716.1Wilhelmsen Ships Service
Consumption
Withhold
5,110.1Wolfspeed
Application-specific
Withhold
3,155.9a
                         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
Entity
Application
Available application-
                             specific allowances  
                             (MTEVe), adjusting for  
                             administrative  
                             consequencesAnalog Devices
Semiconductors
15,998.9Applied Materials
Semiconductors
2,290.4Armstrong Pharmaceuticals
Propellants in MDIs
237,054.0ASML US a
Semiconductors
827.0AstraZeneca Pharmaceuticals
Propellants in MDIs
2,677.0Aurobindo Pharma USA
Propellants in MDIs
23,196.2Compsys
Structural Composite Preformed Polyurethane Foam
16,066.0Defense Technology
Defense Sprays
5,297.2Diodes Incorporated
Semiconductors
1,410.2General Electric
Semiconductors
147.7GlaxoSmithKline
Propellants in MDIs
507,289.7( print page 84589)GlobalFoundries
Semiconductors
117,767.1Hitachi High-Tech America
Semiconductors
113.0IBM Corporation
Semiconductors
613.0Intel Corporation
Semiconductors
528,200.3Invagen Pharmaceuticals
Propellants in MDIs
59,385.2Jireh Semiconductor
Semiconductors
2,315.5Keysight Technologies
Semiconductors
538.8Kindeva Drug Delivery
Propellants in MDIs
492,000.0LA Semiconductor
Semiconductors
2,067.3Lam Research Corp.
Semiconductors
45,436.9Lupin
Propellants in MDIs
19,031.0Magic Leap
Semiconductors
516.9Medtronic Tempe Campus
Semiconductors
455.1Microchip Technology
Semiconductors
7,387.2Micron Technology
Semiconductors
21,068.2Newport Fab DBA TowerJazz
Semiconductors
4,250.5Northrop Grumman Corporation
Semiconductors
2,793.6NXP Semiconductor
Semiconductors
34,081.1Polar Semiconductor
Semiconductors
9,151.7Proteng Distribution
Onboard Aerospace Fire Suppression
5,378.7Qorvo Texas
Semiconductors
470.0Renesas Electronics America
Semiconductors
940.1Samsung Austin Semiconductor
Semiconductors
235,624.8Security Equipment Corporation
Defense Sprays
93,229.5Semiconductor Components Industries DBA ON Semiconductor
Semiconductors
35,794.8SkyWater Technology
Semiconductors
10,463.5Skyworks Solutions
Semiconductors
2,067.6Taiwan Semiconductor Manufacturing Company Arizona Corporation (TSMC Arizona Corporation)
Semiconductors
120,485.4Texas Instruments
Semiconductors
214,219.4The Research Foundation for The State University of New York at NY CREATES
Semiconductors
11,678.4Tokyo Electron U.S. Holdings, Inc.
Semiconductors
5,123.9Tower Semiconductor San Antonio
Semiconductors
3,290.4TSMC Washington (formerly WaferTech)
Semiconductors
10,384.5UC San Diego
Semiconductors
940.1UDAP Industries
Defense Sprays
110,727.8Wabash National Corporation
Structural Composite Preformed Polyurethane Foam
49,299.5Wolfspeed
Semiconductors
12,623.8X-FAB Texas
Semiconductors
1,262.5Department of Defense
Mission-critical Military End Uses
6,238,033.5Total Available
All
9,321,464.9a
                         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 
                    ( print 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
Entity
Available consumption 
                             allowances,  
                             adjusted  
                             for all administrative  
                             consequences  
                             (MTEVe)Application-specific allowances
a
                             9,321,464.9A.C.S. Reclamation & Recovery (Absolute Chiller Services)
127,006.0Ability Refrigerants
127,006.0ACT Commodities
49.4Advance Auto Parts
454,129.5Advanced Specialty Gases
181,274.3AFK & Co
120,586.1AFS Cooling
127,006.0A-Gas
2,165,990.0Air Liquide USA
316,740.9American Air Components b
0.0Arkema
19,743,794.0Artsen
650,046.9Automart Distributors DBA Refrigerant Plus
127,006.0AutoZone Parts
1,251,215.7AW Product Sales & Marketing
76,793.5Bluon b
0.0CC Packaging
123,195.8Chemours
21,775,580.8Chemp Technology
127,006.0ChemPenn
14,122.6ComStar International
228,938.8Creative Solution
127,006.0Cross World Group
127,006.0Daikin America
1,982,882.5EDX Industry
365,186.7Electronic Fluorocarbons
65,973.7Fireside Holdings DBA American Refrigerants
126,992.3First Continental International
489,116.1FluoroFusion Specialty Chemicals
1,614,745.2Freskoa USA
127,006.0GlaxoSmithKline
342,003.0Golden Refrigerant
127,006.0Harp USA
486,407.0Honeywell International
51,631,535.0Hudson Technologies
2,138,919.7Hungry Bear
127,006.0ICool USA
2,164,632.9IGas Holdings
16,587,997.7Iofina Chemical
803.9Kidde-Fenwal
127,006.0Lenz Sales & Distribution
705,440.7Lina Trade
127,006.0Linde
338,329.0Matheson Tri-Gas
21,677.4MEK Chemical Corporation
52,749.3Meraki Group
127,006.0Metalcraft
102,239.8Mexichem Fluor DBA Koura
16,188,629.9Mondy Global
202,490.2National Refrigerants
12,584,245.9Nature Gas Import and Export
520,748.2North American Refrigerants
127,006.0O23 Energy Plus
127,006.0Perfect Score Too DBA Perfect Cycle
24,052.4Reclamation Technologies
379,747.9Resonac America b
0.0RGAS
2,906,639.4RMS of Georgia
1,047,117.2Sciarra Laboratories
5,524.8SDS Refrigerant Services
127,006.0Solvay Fluorides
560,974.1Summit Refrigerants
127,006.0( print page 84591)SynAgile Corporation
714.5Technical Chemical
2,169,768.2TradeQuim
127,006.0Transocean Offshore Deepwater Drilling
10.6Tulstar Products
466,417.0Tyco Fire Products
127,006.0USSC Acquisition Corp
83,475.4Walmart
1,448,967.1Waysmos USA
356,280.8Wego Chemical Group
35,931.8Weitron
4,027,063.6Wesco HMB
118,847.2Wilhelmsen Ships Service
20,553.2a
                         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. 
 
 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.


# Footnotes

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


[FR Doc. 2024-24444 Filed 10-22-24; 8:45 am] BILLING CODE 6560-50-P