Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Rules and Regulations 100381 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 84 

[EPA–HQ–OAR–2021–0643; FRL–11739–02– 

OAR] 

RIN 2060–AW20 

Phasedown of Hydrofluorocarbons: 

Restrictions on the Use of HFCs Under 

the AIM Act in Variable Refrigerant 

Flow Air Conditioning Subsector 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: The U.S. Environmental 

Protection Agency is amending a 

provision of the 2023 Technology 

Transitions regulations promulgated 

under the American Innovation and 

Manufacturing Act of 2020. This action 

provides until January 1, 2027, for the 

installation of certain new variable 

refrigerant flow air conditioning and 

heat pump systems which use 

components manufactured in the United 

States or imported into the United 

States prior to January 1, 2026. This 

action also provides until January 1, 

2028, for the installation of certain new 

variable refrigerant flow air 

conditioning and heat pump systems if 

a building permit that approves the use 

of a hydrofluorocarbon or blend 

containing a hydrofluorocarbon in such 

a system was issued prior to October 5, 

2023, provided that the system uses 

components manufactured in the United 

States or imported into the United 

States prior to January 1, 2026. This 

action will mitigate the potential for 

stranded inventory of variable 

refrigerant flow systems. 

DATES: This final rule is effective on 

January 13, 2025. 

ADDRESSES: The EPA has established a 

docket for this action under Docket ID 

No. EPA–HQ–OAR–2021–0643. All 

documents in the docket are listed on 

the https://www.regulations.gov 

website. Although listed in the index, 

some information is not publicly 

available, e.g., Confidential Business 

Information (CBI) or other information 

whose disclosure is restricted by statute. 

Certain other material, such as 

copyrighted material, is not placed on 

the internet and will be publicly 

available only in hard copy form. 

Publicly available docket materials are 

available electronically through https:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Joshua Silver, Stratospheric Protection 

Division, Office of Atmospheric 

Protection (Mail code 6205A), 

Environmental Protection Agency, 1200 

Pennsylvania Ave. NW, Washington, DC 

20460; telephone number: (202) 564– 

2473; email address: silver.joshua@

epa.gov. You may also visit EPA’s 

website at https://www.epa.gov/climatehfcs-reduction for further information. 

SUPPLEMENTARY INFORMATION: 

Throughout this document, whenever 

‘‘we,’’ ‘‘us,’’ ‘‘the Agency,’’ or ‘‘our’’ is 

used, we mean EPA. Acronyms that are 

used in this rulemaking that may be 

helpful include: 

AC—Air Conditioning 

AHRI—Air-Conditioning, Heating, and 

Refrigeration Institute 

AIM Act—American Innovation and 

Manufacturing Act of 2020 

The Alliance—Alliance for Responsible 

Atmospheric Policy 

BTU/h—British thermal units per hour 

CAA—Clean Air Act 

CRA—Congressional Review Act 

EPA—U.S. Environmental Protection Agency 

FR—Federal Register 

GWP—Global Warming Potential 

HARDI—Heating, Air-conditioning & 

Refrigeration Distributors International 

HFC—Hydrofluorocarbon 

HVAC—Heating, Ventilation, and Air 

Conditioning 

kW—Kilowatt 

NAICS—North American Industry 

Classification System 

NTTAA—National Technology Transfer and 

Advancement Act 

OEM—Original Equipment Manufacturer 

PRA—Paperwork Reduction Act 

RACHP—Refrigeration, Air Conditioning, 

and Heat Pumps 

RFA—Regulatory Flexibility Act 

UMRA—Unfunded Mandates Reform Act 

VRF—Variable Refrigerant Flow 

Table of Contents 

I. General Information 

A. Does this action apply to me? 

B. What action is the Agency taking? 

C. What is the Agency’s authority for 

taking this action? 

D. What are the incremental costs and 

benefits of this action? 

II. Background 

A. Previous Technology Transitions Rules 

B. EPA’s Proposal Regarding Variable 

Refrigerant Flow Systems 

III. EPA’s Final Action 

A. Final Action 

B. Avoiding Stranded Inventory 

C. Comments and Responses 

D. Limiting the Environmental Impact of 

This Action 

E. How do the labeling, recordkeeping, and 

reporting provisions apply? 

F. Evaluation of the Subsection (i)(4) 

Factors 

G. Negotiated Rulemaking 

IV. Judicial Review 

V. Statutory and Executive Order Reviews 

A. Executive Order 12866: Regulatory 

Planning and Review and Executive 

Order 14094: Modernizing Regulatory 

Review 

B. Paperwork Reduction Act (PRA) 

C. Regulatory Flexibility Act (RFA) 

D. Unfunded Mandates Reform Act 

(UMRA) 

E. Executive Order 13132: Federalism 

F. Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

G. Executive Order 13045: Protection of 

Children From Environmental Health 

and Safety Risks 

H. Executive Order 13211: Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use 

I. National Technology Transfer and 

Advancement Act (NTTAA) 

J. Executive Order 12898: Federal Actions 

To Address Environmental Justice in 

Minority Populations and Low-Income 

Populations and Executive Order 14096: 

Revitalizing Our Nation’s Commitment 

to Environmental Justice for All 

K. Congressional Review Act (CRA) 

I. General Information 

A. Does this action apply to me? 

You may be affected by this rule if 

you manufacture, import, export, sell, 

distribute, or install residential and light 

commercial air conditioning and heat 

pump equipment. Potentially affected 

categories, by North American Industry 

Classification System (NAICS) code, 

include: 

• New Multifamily Housing 

Construction (except For-Sale Builders) 

(236116). 

• New Housing For-Sale Builders 

(236117). 

• Residential Remodelers (236118). 

• Industrial Building Construction 

(236210). 

• Commercial and Institutional 

Building Construction (236220). 

• Plumbing, Heating, and Air 

Conditioning Contractors (238220). 

• Air Conditioning and Warm Air 

Heating Equipment and Commercial 

and Industrial Refrigeration Equipment 

Manufacturing (333415). 

• Plumbing and Heating Equipment 

and Supplies (Hydronics) Merchant 

Wholesalers (423720). 

• Warm Air Heating and Air 

Conditioning Equipment and Supplies 

Merchant Wholesalers (423730). 

This list is not intended to be 

exhaustive, but rather provides a guide 

for readers regarding entities likely to be 

regulated by this action. This list 

includes the types of entities that the 

EPA is aware could potentially be 

regulated by this action. Other types of 

entities not included could also be 

regulated. To determine whether your 

entity is regulated by this action, you 

should carefully examine the regulatory 

text at the end of this document. If you 

have questions regarding the 

applicability of this action to a 

particular entity, consult the person 


ddrumheller on DSK120RN23PROD with RULES1
100382 Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Rules and Regulations 

1 ‘‘Regulated substance’’ and ‘‘HFC’’ are used 

interchangeably in this document. 

listed in the FOR FURTHER INFORMATION

CONTACT section. 

B. What action is the Agency taking? 

This rule provides one additional 

year, until January 1, 2027, for the 

installation of new variable refrigerant 

flow (VRF) systems used for residential 

and light-commercial air-conditioning 

and heat pumps when using 

components that are manufactured in 

the United States or imported into the 

United States before January 1, 2026. 

Specifically, this rule allows for pre2026 condensing units, evaporators, and 

air handlers using hydrofluorocarbons 

(HFCs) and blends containing HFCs, 

such as R–410A, not meeting the 

October 2023 Technology Transitions 

Rule’s (88 FR 73098) restrictions, to be 

assembled into new VRF systems (i.e., 

installed), so long as those systems are 

assembled prior to January 1, 2027. For 

projects that were issued a building 

permit which approved the use of an 

HFC or blend containing an HFC in a 

VRF system prior to October 5, 2023, 

this rule provides for installation of 

such systems until January 1, 2028, 

provided that they use components that 

are manufactured in the United States or 

imported into the United States prior to 

January 1, 2026. 

C. What is the Agency’s authority for 

taking this action? 

On December 27, 2020, the American 

Innovation and Manufacturing Act of 

2020 (AIM Act) was enacted as section 

103 in Division S, Innovation for the 

Environment, of the Consolidated 

Appropriations Act, 2021 (codified at 42 

U.S.C. 7675). Subsection (k)(1)(A) of the 

AIM Act provides EPA with the 

authority to promulgate necessary 

regulations to carry out EPA’s functions 

under the Act, including its obligations 

to ensure that the Act’s requirements are 

satisfied. Subsection (k)(1)(C) of the 

AIM Act also provides that the Clean 

Air Act (CAA) sections 113, 114, 304, 

and 307 apply to the AIM Act and any 

regulations EPA promulgates under the 

AIM Act as though the AIM Act were 

part of title VI of the CAA. Accordingly, 

this rulemaking is subject to CAA 

section 307(d) (see 42 U.S.C. 

7607(d)(1)(l)) (CAA section 307(d) 

applies to ‘‘promulgation or revision of 

regulations under subchapter VI of this 

chapter (relating to stratosphere and 

ozone protection)’’). 

The AIM Act authorizes EPA to 

address HFCs by providing authorities 

in three main areas: phasing down the 

production and consumption of listed 

HFCs; promulgating certain regulations 

for purposes of maximizing reclamation 

and minimizing releases of these HFCs 

from equipment and ensuring the safety 

of technicians and consumers; and 

facilitating the transition to nextgeneration technologies by restricting 

use of these HFCs in sectors or 

subsectors in which they are used. 

Subsection (i) of the AIM Act, 

‘‘Technology Transitions,’’ provides that 

‘‘the Administrator may by rule restrict, 

fully, partially, or on a graduated 

schedule, the use of a regulated 

substance in the sector or subsector in 

which the regulated substance is used.’’ 

42 U.S.C. 7675(i)(1). The AIM Act lists 

18 HFCs, and by reference any of their 

isomers not so listed, that are covered 

by the statute’s provisions, referred to as 

‘‘regulated substances’’ under the Act.1

(42 U.S.C. 7675(c)(1)). This rule amends 

restrictions on the use of regulated 

substances, or blends containing 

regulated substances, with a global 

warming potential (GWP) above 700 for 

VRF systems. EPA’s regulations at 40 

CFR 84.64 describe how to determine 

the GWP of a regulated substance or 

blend containing a regulated substance 

for purposes of complying with 

regulations under the Technology 

Transitions program. 

D. What are the incremental costs and 

benefits of this action? 

This rule will reduce regulatory 

burden associated with the Technology 

Transitions restrictions on VRF systems 

used for residential and light 

commercial air-conditioning and heat 

pumps while having a negligible 

environmental impact. Original 

equipment manufacturers (OEMs) and 

distributors have indicated that 

manufactured inventory of VRF 

equipment could go unsold without an 

extension of the installation compliance 

date. Commenters representing builders 

and owners of large residential 

buildings have also described how they 

may be unable to install alreadypurchased VRF equipment in projects 

that are currently under development 

within the existing timeframes. 

Stranding equipment that does not meet 

the new GWP limits is counter to the 

overall approach EPA took in the 

October 2023 Technology Transitions 

Rule. Providing additional time for the 

installation of these systems will not 

affect the environmental benefits 

modeled under that rule given EPA is 

limiting the extension of the installation 

compliance date to equipment 

manufactured in the United States or 

imported into the United States before 

the existing compliance date of January 

1, 2026 (88 FR 73098). Therefore, we do 

not anticipate an increase in the amount 

of VRF equipment manufactured or 

imported as a result of this rule. 

II. Background 

A. Previous Technology Transitions 

Rules 

On October 24, 2023, EPA published 

the final rule establishing the 

Technology Transitions program (88 FR 

73098; hereafter ‘‘October 2023 

Technology Transitions Rule’’). That 

rule restricted the use of certain HFCs 

in many sectors and subsectors in which 

they are used by establishing limits for 

those uses based on GWP. Among other 

things, that rule prohibited the 

manufacture and import of factorycompleted products and the installation 

of certain refrigeration, air conditioning, 

and heat pump systems that use HFCs 

or blends containing HFCs above 

specified GWP limits. The compliance 

dates for these restrictions vary by 

subsector and range generally from 

January 1, 2025, to January 1, 2028. The 

rule also included a prohibition on the 

sale, distribution, and export of factorycompleted products that applies three 

years after the subsector manufacture 

and import compliance dates, to allow 

for a sell-through period of previously 

manufactured or imported products. 

After issuance of the October 2023 

Technology Transitions Rule, 

manufacturers, importers, and 

distributors of residential and light 

commercial air conditioning and heat 

pump equipment requested clarification 

about split systems and VRF systems. A 

letter dated November 13, 2023, to EPA 

from the Air-Conditioning, Heating, and 

Refrigeration Institute (AHRI), the 

Alliance for Responsible Atmospheric 

Policy (the Alliance), and Heating, Airconditioning & Refrigeration 

Distributors International (HARDI) 

states that these organizations 

understand that components for these 

systems that are manufactured or 

imported before January 1, 2025, and 

January 1, 2026, respectively, using an 

HFC or blend containing an HFC with 

a GWP of 700 or more, cannot be 

installed as new systems after each such 

compliance date (See Docket ID No. 

EPA–HQ–OAR–2021–0643–0246). The 

letter states that not allowing time 

between the manufacture and import 

compliance date and the installation 

date would be ‘‘particularly problematic 

for residential new construction, 

including both single-family and multifamily dwellings, where builders order 

heating and cooling equipment well in 

advance of knowing the exact date of 

install. Such equipment is not installed 

until construction is nearly complete, 


ddrumheller on DSK120RN23PROD with RULES1
Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Rules and Regulations 100383 

2The regulations at 40 CFR 84.54(c)(2) treat VRF 

systems as a separate subsector, due to how the 

regulatory restriction is structured. No difference in 

meaning is intended as to which systems are 

addressed, however. 

3AHRI notes that its ‘‘reports track shipments, 

which are defined as when a unit transfers 

ownership. While some people use the terms 

shipments and sales interchangeably, they may not 

be the same.’’ See https://www.ahrinet.org/ 

analytics/statistics. Date Accessed: November 15, 

2024. 

4See https://www.ejarn.com/article/detail/83750. 

In this article, the term ‘‘units’’ is used, as in 

‘‘79,000 units.’’ We note that VRF units is not 

equivalent to VRF systems. 

but at time of order builders do not 

know when this date will be.’’ The letter 

further articulates that allowing the use 

of components manufactured or 

imported prior to the compliance date to 

be installed as part of new systems for 

one year after the compliance date 

would provide some relief to these 

economic and practical burdens. 

In response to this letter from 

industry trade groups, EPA indicated on 

November 29, 2023, that the Agency 

‘‘intends to act swiftly to address 

concerns regarding the January 1, 2025, 

installation compliance date, including 

by potentially amending the final 

regulation to allow for installation of 

previously manufactured components 

until January 1, 2026, and separately 

intends timely consideration of VRF 

systems’’ (See Docket ID No. EPA–HQ– 

OAR–2021–0643–0235). Subsequently, 

EPA issued an interim final rule (88 FR 

88825; December 26, 2023) to reevaluate 

the specific circumstances for 

residential and light commercial air 

conditioning and heat pump systems. 

That rule extended the installation 

compliance date for those systems from 

January 1, 2025, to January 1, 2026, 

when using components that are 

manufactured or imported prior to 

January 1, 2025, to prevent the stranding 

of existing inventories of equipment. 

That rule did not address VRF systems, 

which are subject to this action. 

B. EPA’s Proposal Regarding Variable 

Refrigerant Flow Systems 

In response to stakeholder concerns 

raised in the aforementioned letter 

received by EPA after the finalization of 

the October 2023 Technology 

Transitions Rule, EPA proposed to 

adjust the installation compliance date 

for VRF systems manufactured or 

imported prior to January 1, 2026 (89 FR 

53373; June 26, 2024; hereafter ‘‘VRF 

Proposed Rule’’). VRF systems are 

described in the October 2023 

Technology Transitions Rule as direct 

expansion multi-split systems that 

incorporate the following: a split system 

air conditioner or heat pump 

incorporating a single refrigerant circuit 

that is a common piping network to two 

or more indoor evaporators, each 

capable of independent control, or 

compressor units. VRF systems contain 

a single module outdoor unit or 

combined module outdoor units with at 

least one variable capacity compressor 

that has three or more steps of capacity, 

with air or water as the heat source. 

While this technology is used in air 

conditioning and heat pump equipment 

of any size, the October 2023 

Technology Transitions Rule 

restrictions for VRF systems apply only 

to air-source VRF systems with 

capacities of 65,000 BTU/h (19 kW) or 

more and water-source VRF systems of 

any capacity. The regulatory text at 40 

CFR 84.54(c)(2) refers to these systems 

as ‘‘variable refrigerant flow systems for 

use as residential and light commercial 

air-conditioning or heat pumps.’’ 2

Throughout this preamble, these 

systems are referred to as ‘‘VRF 

systems.’’ 

The number of VRF systems is small 

compared to the overall number of 

residential and light commercial air 

conditioning and heat pump equipment. 

EPA used data from AHRI (See Docket 

ID No. EPA–HQ–OAR–2021–0643– 

0245) 3 and eJARN 4 to estimate that 

approximately 42,000 VRF units that 

had a capacity of 65,000 BTU/h or more 

were sold in 2023. This represents 

0.49% of total air conditioning and heat 

pump equipment sales that year. The 

available data also indicate that 

approximately 37,000 VRF units with 

capacities below 65,000 BTU/h were 

sold in 2023. Adding together these 

estimates of units sold in 2023 for VRF 

units of any capacity provides an overall 

estimate of 79,000 VRF units, which is 

approximately 0.91% of all air 

conditioning and heat pump equipment 

sold in 2023. EPA notes that this 

number and percentage of VRF units is 

a rough estimate intended to describe its 

use currently as an extremely small 

percentage of all residential and light 

commercial air conditioning and heat 

pump equipment. 

In the VRF Proposed Rule, EPA 

proposed to extend the installation 

compliance date for new VRF systems 

from January 1, 2026, to January 1, 2027, 

when using components that are 

manufactured or imported prior to 

January 1, 2026 (89 FR 53373; June 26, 

2024). In the alternative, EPA proposed 

to extend the installation compliance 

date for new VRF systems from January 

1, 2026, to January 1, 2027, when using 

components that are manufactured or 

imported prior to January 1, 2026, but 

only for projects where a building 

permit both approved the HFC or blend 

containing the HFC to be used and was 

issued prior to October 5, 2023. 

EPA received public comments on its 

proposal from stakeholders representing 

VRF equipment manufacturers, 

distributors, industry trade groups, real 

estate developers, contractors, and 

environmental groups. After the initial 

30-day comment period ended on July 

26, 2024, the Agency reopened the 

comment period via a document 

published in the Federal Register to 

offer the public an opportunity to 

request a public hearing to provide oral 

comment, if desired (89 FR 65575; 

August 12, 2024). A public hearing was 

requested, and the Agency held a public 

hearing on August 27, 2024. The 

comment period remained open for 30 

days after the date of the public hearing, 

closing on September 26, 2024. All 

comments received on the VRF 

Proposed Rule and a transcript of the 

public hearing are available in the 

docket for this action (See Docket ID No. 

EPA–HQ–OAR–2021–0643). 

III. EPA’s Final Action 

A. Final Action 

After considering the comments and 

input received on the VRF Proposed 

Rule, EPA is finalizing the extended 

installation compliance date for new 

VRF systems to January 1, 2027, as 

proposed. EPA is also providing 

additional time, to January 1, 2028, for 

the installation of such systems in 

projects where a building permit 

approved the use of an HFC or blend 

containing an HFC in such a system, 

and was issued prior to October 5, 2023. 

Building permits are government-issued 

documents that grant authorization to 

an entity to begin a construction project, 

which are typically issued by local 

permitting authorities, or authorities 

having jurisdiction. This includes 

county or city offices of permits and 

licensing, departments of housing, or 

other authorities having jurisdiction. 

Building permits vary in the level of 

specificity provided; for purposes of 

EPA’s regulations in 40 CFR part 84, 

subpart B, EPA considers a building 

permit to include designs submitted as 

part of the application that is approved 

by the authority having jurisdiction. 

These extensions only allow for 

installation of new VRF systems using 

an HFC, or blend containing an HFC, 

with a GWP above 700 in components 

that are manufactured in the United 

States or imported into the United 

States prior to January 1, 2026. 

To further limit the possibility of 

stranded inventory, EPA is providing 

the additional time for installation to 

January 1, 2028, for projects where three 


ddrumheller on DSK120RN23PROD with RULES1
100384 Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Rules and Regulations 

5See 88 FR 73143 (industrial process refrigeration 

systems—proposed January 1, 2025, compliance 

date, finalized January 1, 2026, compliance date 

(January 1, 2028, for some subsectors); 88 FR 73149 

(data centers, ITEF, computer room cooling 

equipment—proposed January 1, 2025, compliance 

date, finalized January 1, 2027, compliance date); 

88 FR 73150 (systems in retail food refrigeration 

subsector—proposed January 1, 2025, compliance 

date, finalized a range of compliance dates from 

January 1, 2026, to January 1, 2028); 88 FR 73162 

(cold storage warehouses—proposed January 1, 

2025, compliance date, finalized January 1, 2026, 

compliance date); 88 FR 73163 (ice rinks—retained 

proposed January 1, 2025, compliance date in final 

rule but increased GWP limit from 150 to 700); 88 

FR 73175 (chillers-industrial process refrigeration— 

proposed January 1, 2025 compliance date, 

finalized compliance dates of January 1, 2026, and 

January 1, 2028 depending on the system). 

conditions are met: (1) an approved 

building permit was issued for a project 

prior to October 5, 2023, (2) that 

building permit approves the use of an 

HFC or blend containing an HFC in a 

VRF system, and (3) all specified 

components of that VRF system are 

manufactured in the United States or 

imported into the United States prior to 

January 1, 2026. Stakeholder input 

indicated that even a January 1, 2027, 

extended installation compliance 

deadline could still risk stranding VRF 

equipment for larger buildings using 

VRF systems with particularly long 

construction timelines. EPA is finalizing 

this rule with the additional extension 

given the complexity of these systems, 

the size of the projects in which these 

systems are typically installed, and 

recognizing that the projects were 

issued approved building permits prior 

to the issuance of the Technology 

Transitions Rule on October 5, 2023. 

EPA recognizes that a subset of 

construction projects that use VRF 

equipment were issued approved 

building permits prior to October 5, 

2023, and may not be completed by the 

new installation date of January 1, 2027, 

and thus determines that this additional 

flexibility for those projects using VRF 

systems with HFCs or blends containing 

HFCs above the new GWP threshold is 

reasonable in light of the goal to avoid 

stranding inventory. 

B. Avoiding Stranded Inventory 

An important consideration in the 

October 2023 Technology Transitions 

Rule was to avoid stranding inventory of 

equipment manufactured ahead of the 

various compliance deadlines. This 

includes systems that are already 

installed and operating as well as 

unsold equipment in the manufacturing 

and distribution chain. EPA stated that 

‘‘[w]e recognize that the production and 

purchase of products or components 

that are unable to be sold to consumers 

is an economic and environmental 

outcome no parties desire, and the 

proposed rule’s forward-looking 

compliance dates were intended to 

allow all parties in the market supply 

chain sufficient time to avoid that 

outcome’’ (88 FR 73123; October 24, 

2023). EPA’s goal of avoiding the 

stranding of inventory is consistent with 

the requirement in subsection (i)(6) that 

Technology Transitions restrictions may 

not take effect sooner than one year 

from the date of promulgation; this 

provision also serves to ensure that 

regulated parties have sufficient time to 

prepare for and comply with restrictions 

under this provision. In response to 

concerns about stranded inventory 

raised during the public comment 

period on that proposed rule, EPA made 

two significant adjustments in the 

October 2023 Technology Transitions 

Rule. 

First, EPA removed the applicability 

of the rule’s use restrictions to 

components. EPA explained that 

components are pieces of equipment 

that do not function independently and 

must be assembled together in the field 

in order to function for its intended 

purpose. Components are replaceable 

and a faulty component can be swapped 

out to avoid replacing an entire system. 

Recognizing the ongoing need for 

servicing and updating previously 

installed systems, EPA allowed for the 

continued manufacture, import, sale, 

distribution, offer for sale and 

distribution, and export of components 

that rely on higher-GWP HFC 

refrigerants. Aside from reporting and 

labeling requirements, components are 

not subject to the restrictions in the 

October 2023 Technology Transitions 

Rule, except insofar as those 

components may not be installed in new 

systems on or after the applicable 

installation compliance dates. 

Second, EPA extended the sellthrough period for factory-completed 

products in the October 2023 

Technology Transitions Rule from one 

year to three years after the manufacture 

and import compliance date. For the 

purposes of the restrictions under that 

rule for the refrigeration, air 

conditioning, and heat pump (RACHP) 

sector, factory-completed products are 

pieces of equipment that are functional 

upon completion of manufacturing in a 

factory. Functional means that the 

equipment’s refrigerant circuit is 

complete, it is charged with refrigerant, 

and it is ready to use for its intended 

purpose. The Agency received many 

comments on this topic, including from 

those commenters that considered one 

year to be insufficient for the sale of 

seasonal products. 

EPA believed it had minimized the 

potential for stranded inventory with 

these two modifications to the October 

2023 Technology Transitions Rule. 

Specifically with respect to 

components, the Agency’s view was that 

there would continue to be a market for 

components not meeting the GWP limit 

thresholds for new systems, because 

those components could continue to 

enter the market to service existing 

systems. 

EPA also finalized later compliance 

dates for the installation of most fieldassembled refrigeration systems, 

recognizing, in part, that refrigeration 

systems would require manufacturers 

and importers to make components 

available and that such systems can be 

specifically designed for an individual 

facility and would need more time to 

transition.5 For some refrigeration 

subsectors, EPA also recognized in the 

October 2023 Technology Transitions 

Rule that buildings may have already 

been issued an approved building 

permit prior to finalization of that rule. 

Recognizing that where earlier issued 

permits approved the use of an HFC or 

blend containing an HFC, and where 

such permitted systems were likely to 

be highly complex and costly to 

redesign, EPA provided one additional 

year beyond the final rule compliance 

dates for the installation of certain fieldassembled systems. Specifically, that 

extension applied to the following 

refrigeration systems or subsectors 

(certain industrial process refrigeration 

systems; retail food refrigeration— 

supermarkets; cold storage warehouses; 

and ice rinks) if an approved building 

permit was issued prior to the signature 

date of the final rule (i.e., October 5, 

2023), and the permit specified the use 

of a system containing an HFC or blend 

containing an HFC with a GWP above 

the relevant GWP threshold for that 

subsector (88 FR 73120; 40 CFR 

84.54(d)). 

EPA intended this limited flexibility 

in the October 2023 Technology 

Transitions Rule to prevent the need to 

redesign these systems and, in some 

cases, the facility that houses these 

systems, given that facilities or systems 

may already have been well along on 

the construction timeline. EPA granted 

this permit-based extension selectively, 

as most systems are not typically 

designed specifically for an individual 

facility and/or most systems covered by 

the October 2023 Technology 

Transitions Rule have a later 

compliance date and thus could make 

any necessary adjustments with the 

GWP restrictions in mind. 

EPA did not finalize later compliance 

dates for the installation of residential 

and light commercial air conditioning 

and heat pump systems and VRF 


ddrumheller on DSK120RN23PROD with RULES1
Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Rules and Regulations 100385 

6See 88 FR 73178 (residential and light 

commercial air conditioning and heat pumps— 

proposed January 1, 2025, compliance date, 

finalized January 1, 2025, compliance date); id. 

(VRF systems—proposed January 1, 2026, 

compliance date, finalized January 1, 2026, 

compliance date). 

systems in the October 2023 Technology 

Transitions Rule.6 After issuing that 

rule, EPA learned that additional time, 

which EPA had extended to nearly all 

of the subsectors covering fieldassembled refrigeration systems, was 

also needed for residential and light 

commercial air conditioning systems 

and VRF systems. As noted previously, 

EPA responded by issuing an interim 

final rule reevaluating the specific 

circumstances for residential and light 

commercial air conditioning and heat 

pump systems and extending the 

installation compliance date for those 

systems by one year to January 1, 2026 

(88 FR 88825; December 26, 2023), and 

by undertaking this rulemaking for VRF 

systems. 

EPA has reevaluated the planning, 

purchasing, and installation timeframes 

for VRF systems in new construction 

projects as referenced in the Agency’s 

response to industry stakeholders (See 

Docket ID No. EPA–HQ–OAR–2021– 

0643–0235). EPA is providing one 

additional year to install VRF systems, 

which aligns with the additional time 

already provided for system 

installations in many refrigeration 

subsectors in the October 2023 

Technology Transitions Rule and in the 

interim final rule for installation of 

residential and light commercial air 

conditioning and heat pump systems. In 

addition, EPA is allowing installation of 

VRF systems that use an HFC, or a blend 

containing an HFC, with a GWP above 

700 until January 1, 2028, in projects 

where a building permit approves the 

use of an HFC or blend containing an 

HFC in a VRF system, and that 

approved building permit was issued 

prior to October 5, 2023, provided the 

components were manufactured or 

imported prior to January 1, 2026. EPA 

is providing this additional extension 

based on information received from 

commenters that detailed the length of 

the timeline from initial design, to 

permitting, to construction completion 

of projects that incorporate VRF 

systems, which are typically much 

larger and more complex than other 

projects. Given the longer lead times for 

the compliance dates for new projects 

incorporating VRF systems, EPA does 

not anticipate similar scenarios for 

equipment used in other sectors and 

subsectors covered by the October 2023 

Technology Transitions Rule. 

The construction of new multi-unit 

residential and commercial buildings is 

planned well in advance, including 

plans for the heating and cooling 

systems intended to be installed in that 

new construction. Builders may order 

those planned heating and cooling 

systems in concert with the planning 

process well in advance of when those 

systems are installed. As noted by 

commenters, installation of these 

systems is often one of the final steps in 

construction. For construction planned 

to occur after January 1, 2026, 

components of VRF systems that use a 

regulated substance, or a blend 

containing a regulated substance, with a 

GWP above 700 may have already been 

incorporated into the design of the 

building and ordered by builders. In 

addition, such buildings may have 

already been issued a building permit 

approving the use of an HFC or blend 

containing an HFC with a GWP above 

700, from the appropriate local 

permitting authority or the authority 

having jurisdiction, prior to October 5, 

2023. In these cases, the VRF equipment 

associated with these projects are at risk 

of being stranded. EPA also recognizes 

that as one of the first systems facing a 

system installation compliance date 

under the October 2023 Technology 

Transitions Rule, the ability of installers 

of VRF systems to comply with this 

deadline relies on equipment 

manufacturers, importers, and 

distributors to quickly make 

commercially available component parts 

that comply with the GWP thresholds. 

For this reason, as well, EPA has 

determined it is appropriate to provide 

a limited extension for compliance. 

As discussed in the October 2023 

Technology Transitions Rule, EPA 

established the compliance date of 

January 1, 2026, for these systems based 

on consideration of the AIM Act’s 

subsection (i)(4) factors, and in 

particular, the assessment that VRF 

systems will be able to meet the GWP 

limit of 700 and transition from the 

current use of HFCs. EPA’s 

consideration of the statutory factors 

continues to support a swift transition 

for these systems, but the January 1, 

2026, installation compliance date 

could result in builders of new 

construction being left with stranded 

inventory that could not be used. 

Stranding inventory is an economically 

and environmentally undesirable 

outcome, and the issue addressed in this 

rule—that the January 1, 2026 

installation deadline for new VRF 

systems could result in stranded 

inventory—was not brought to the 

Agency’s attention until after the 

October 2023 Technology Transitions 

Rule was finalized. Through this action, 

EPA is extending the January 1, 2026, 

installation compliance date to January 

1, 2027, provided the new installation 

uses components that are manufactured 

or imported prior to January 1, 2026. In 

addition, for those projects that were 

issued a building permit prior to 

October 5, 2023 which approves the use 

of an HFC or blend containing an HFC 

in a VRF system, EPA is extending the 

installation compliance deadline to 

January 1, 2028, provided all specified 

components of that VRF system were 

manufactured or imported prior to 

January 1, 2026. 

C. Comments and Responses 

The Agency received several 

comments on the VRF Proposed Rule. 

These comments are addressed in this 

section. 

Comment: Several commenters, 

representing original equipment 

manufacturers (OEMs), distributors, air 

conditioning contractors, developers, 

and trade associations—including the 

groups that contacted the Agency in the 

November 13, 2023, letter—expressed 

support for the proposal to extend the 

installation compliance date by one 

year. They reiterated that the proposal 

‘‘provides indispensable relief to 

manufacturers, homebuilders, and other 

stakeholders in the implementation of 

the . . . AIM Act and the [October 2023 

Technology Transitions Rule]’’ (See 

Docket ID No. EPA–HQ–OAR–2021– 

0643–0255). Commenters underscored 

the importance of the proposed 

extension to mitigate the potential for 

significant stranded inventory that 

would otherwise burden the industry 

(See Docket ID No. EPA–HQ–OAR– 

2021–0643–0249). Some requested this 

rule to be finalized soon, or before the 

end of 2024, to provide clarity for the 

industry (See Docket ID No. EPA–HQ– 

OAR–2021–0643–0253, and Docket ID 

No. EPA–HQ–OAR–2021–0643–0276). 

Response: EPA agrees with 

commenters that extending the 

installation compliance date by one 

year, until January 1, 2027, for such 

equipment would avoid stranding 

inventory and provide relief to most 

manufacturers, distributors, builders, 

and other stakeholders. EPA takes note 

of the request to finalize this rule 

quickly to provide clarity for the 

industry. 

Comment: Three commenters 

requested the Agency exempt projects 

that were already permitted. One 

commenter suggested EPA exempt 

buildings from any VRF system 

installation compliance date if they 

received a permit prior to October 5, 


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2023. Another commenter encouraged 

EPA to consider a variance or 

exemption for already-designed projects 

that had applied for permits based on 

heating, ventilation, and air 

conditioning (HVAC) systems thenavailable on the market. One commenter 

requested the Agency consider a further 

exemption of previously permitted VRF 

equipment. 

Response: While some flexibility is 

fitting, it would not be appropriate with 

the application of the subsection (i)(4) 

factors to provide a broad, indefinite 

exemption for VRF systems from the 

October 2023 Technology Transitions 

Rule to any project where the project in 

which the system would be installed 

was issued an approved building permit 

prior to October 5, 2023. EPA was 

cognizant in establishing restrictions in 

the October 2023 Technology 

Transitions Rule, and in considering the 

new information provided after 

finalization of the October 2023 

Technology Transitions Rule that there 

may be equipment that would need to 

work its way through the distribution 

chain. As demonstrated in the October 

2023 Technology Transitions Rule, EPA 

recognized that in discrete situations, 

projects that were issued approved 

building permits prior to October 5, 

2023, may not have the system installed 

by the relevant compliance date as 

anticipated. EPA’s analysis under the 

October 2023 Technology Transitions 

Rule was that substitutes with a GWP 

below 700 will be available for the 

components needed for the installation 

of VRF systems in time for the January 

1, 2026, compliance date. One of the 

primary manufacturers of this 

equipment has confirmed EPA’s 

assessment about availability in the 

materials provided to the Agency during 

the comment period. However, as noted 

previously, EPA became aware of new 

information after the issuance of the 

October 2023 Technology Transitions 

Rule that indicated the potential for 

stranded inventory held by some 

affected entities. As a result, EPA is 

extending the compliance date for 

installation by one year and based on 

the comments received, is finalizing a 

limited additional extension for projects 

where abuilding permit approves use of 

an HFC or blend containing an HFC in 

a VRF system, and that approved 

building permit was issued by the 

relevant permitting authority prior to 

October 5, 2023. This additional time 

recognizes that some projects were well 

underway ahead of the issuance of the 

October 2023 Technology Transitions 

Rule. The Agency expects that projects 

with an approved building permit 

issued on or after October 5, 2023, will 

either use VRF systems that meet the 

700 GWP threshold, or will use VRF 

components that are manufactured or 

imported prior to January 1, 2026, and 

will be installed by the January 1, 2027, 

installation deadline. 

Comment: Some commenters 

requested that the installation 

compliance date be extended by two 

years, instead of one, and described the 

several-year construction timeline in 

support of this request. One commenter 

stated this extended timeline is 

necessary to provide projects that have 

already been designed, permitted, 

financed, and contracted with enough 

time to meet the installation compliance 

date (See Docket ID No. EPA–HQ–OAR– 

2021–0643–0251). Other commenters 

stated that more than one year is needed 

to provide building owners and 

developers with time to comply without 

significantly disrupting existing 

projects, particularly larger, in-process 

development projects where 

construction has already started (See 

Docket ID EPA–HQ–OAR–2021–0643– 

0256). Two commenters requested a 

blanket two-year extension to the 

installation compliance date given the 

several-year construction timeline. They 

described this timeline, from initial 

design to construction completion, for 

buildings with VRF systems. One of 

these two commenters stated that it can 

take six to 18 months to design a 

building, obtain building permits, and 

go through the entitlement process. This 

commenter noted that the HVAC system 

is incorporated into the initial design of 

a building based on available 

equipment. Further, this commenter 

stated that the construction timeline 

after the design and permitting stage 

ranges from 12 months to three years, 

depending on jurisdiction, construction 

type, project size, and project 

complexity. The other commenter 

indicated the total time between initial 

design and selection of the project’s 

mechanical systems and the installation 

of those mechanical systems in large 

development projects is typically 

between four and eight years. This 

commenter further noted that design 

takes at least two years, and that HVAC 

systems are selected during the design 

planning process. This commenter, who 

is based in New York, stated that the 

building permit approval process in 

New York takes six to 12 months, and 

that construction starts three to six 

months after building permits are 

approved. Lastly, this commenter noted 

that actual construction takes two to six 

years, and that installation of the HVAC 

systems, while purchased at the start of 

the construction period, are installed 

within the last six months of this 

schedule. 

Response: EPA took into 

consideration the comments from 

stakeholders who preferred a blanket 

two-year extension to the installation 

compliance date for VRF systems, 

however we do not agree that a blanket 

two-year extension to the installation 

compliance date for VRF systems is 

warranted. 

EPA considered the information on 

construction timelines that commenters 

provided. EPA’s decision in this final 

rule to extend the installation 

compliance date by one year for VRF 

systems, and by two years for projects 

that were issued an approved building 

permit prior to October 5, 2023, and 

meet the other conditions described in 

this rule, is informed by these 

comments. This rule and its extension 

of the compliance dates for installation 

of VRF systems is designed to mitigate 

the narrow issue of stranded inventory 

without delaying the overall transition 

to substitutes for VRF systems that are 

compliant with the GWP thresholds 

established in the October 2023 

Technology Transitions Rule. Regulated 

parties also have a responsibility to 

ensure that they are not taking actions, 

particularly after promulgation of a 

regulation, that risk creating stranded 

inventory. Such actions may include, 

but are not limited to, submitting 

building permits for approval at such a 

point that does not give sufficient time 

for the authority having jurisdiction to 

issue an approved building permit and 

allow the project to be constructed, with 

the relevant equipment installed, by a 

regulatory deadline. It also includes 

purchasing equipment that may not be 

able to be installed by a regulatory 

deadline. 

In establishing the January 1, 2026, 

deadline in the October 2023 

Technology Transitions Rule, EPA 

provided more than two years between 

promulgation of that rule and the 

relevant installation compliance date. In 

this action, EPA is providing an 

additional year for all VRF systems that 

were subject to the January 1, 2026 

deadline, or two additional years under 

a specific set of circumstances. Most 

affected regulated entities will therefore 

have more than three years from the 

time the October 2023 Technology 

Transitions Rule was published in the 

Federal Register, and the new 

installation compliance deadline. For 

those projects that were issued an 

approved building permit prior to the 

finalization of the October 2023 

Technology Transitions Rule, and were 

therefore further along on the 


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construction timeline, we are providing 

more than four years, until January 1, 

2028. Builders, VRF equipment 

manufacturers, distributors, and 

installers therefore will have had 

multiple years to accommodate the 

restrictions in their planning. Moreover, 

available information indicates that 

equipment using compliant lower-GWP 

substitutes will be available for 

installation allowing the affected 

regulated entities to meet the new 

installation compliance date of January 

1, 2027. Those projects that were issued 

an approved building permit prior to the 

signature of the October 2023 

Technology Transitions Rule, and meet 

other conditions as described in this 

rule, are being granted until January 1, 

2028, not because of the lack of 

available equipment for compliance 

with the restrictions, but because it is 

more likely that the construction 

timeline of such projects is further along 

such that the likelihood of stranding 

inventory for these projects is greater. 

Commenters requesting a blanket twoyear extension did not supply sufficient 

information to support such an 

extension, or a longer extension, for 

installation of VRF systems. One 

commenter’s construction timeline of 12 

months to three years is fully within the 

time provided in this rule. The other 

commenter’s construction timeline of 

two to six years goes beyond the more 

than four years provided for projects 

that were issued an approved building 

permit prior to October 5, 2023. 

However, this commenter noted just one 

project that would be adversely affected 

by a January 1, 2027, compliance date, 

and the extension to January 1, 2028, for 

projects that were issued an approved 

building permit prior to October 5, 2023 

and meet the other conditions described 

in this rule, resolves the commenter’s 

concern with respect to the specified 

project. 

The Agency is also cognizant of the 

remaining phasedown period for HFCs 

in declining to adopt commenters’ 

request for additional extensions. Per 

Congress’ phasedown schedule in the 

AIM Act, by 2029 overall domestic 

production and consumption of HFCs 

must be reduced by 70 percent from 

historic baseline levels and by 85 

percent from the baseline by 2036. AIM 

Act subsection (i)(4)(D) directs EPA to 

factor in, to the extent practicable, ‘‘the 

remaining phase-down period for 

regulated substances,’’ when 

promulgating restrictions under the 

Technology Transitions program. 42 

U.S.C. 7675(i)(4)(D). EPA explained in 

the October 2023 Technology 

Transitions Rule that the fact that most 

of the AIM Act’s phasedown would 

occur by 2029 was ‘‘an important 

factor’’ in finalizing the compliance 

dates and restrictions in the Technology 

Transitions Rule (See 88 FR 73140). As 

the phasedown is implemented, the 

supply of available HFCs will decrease 

significantly. Timely restricting the use 

of HFCs in sectors and subsectors that 

are well positioned to transition to new 

substitutes and technologies supports 

the phasedown and fulfills Congress’ 

direction to the Agency in subsection 

(i). For VRF systems, the best available 

information from manufacturers and 

industry commenters is that substitutes 

that meet the October 2023 Technology 

Transitions Rule’s restrictions are 

currently being manufactured and will 

be commercially available in time to 

support the transition. We therefore do 

not agree that extensions beyond those 

established in this rule are warranted. 

Comment: One commenter requested 

a two-year extension to the installation 

compliance date for VRF systems in 

projects that use higher-GWP 

refrigerants, were permitted prior to 

October 24, 2023, and where the 

components for such systems are 

manufactured or imported prior to 

January 1, 2026 (See Docket ID No. 

EPA–HQ–OAR–2021–0643–0251). This 

commenter described that it is in the 

process of constructing a building and 

expects to complete the installation of 

the VRF system in that building by 

April 1, 2027. The commenter stated 

that this project was issued an approved 

building permit prior to finalization of 

the October 2023 Technology 

Transitions Rule and submitted its 

approved permitting documents and 

building designs to the docket. These 

documents indicate R–410A, a 

refrigerant blend that has a GWP of 

2,088 and consists of two HFCs 

regulated under the AIM Act, is 

intended to be used in the VRF system 

in the project. 

Response: EPA appreciates the details 

and documents provided by this 

stakeholder on this project. EPA notes 

this stakeholder’s concern would not be 

addressed with a one-year extension to 

the installation compliance date. 

Projects that had already been issued an 

approved building permit prior to 

October 5, 2023, are more likely than 

those that were issued an approved 

building permit on or after this date to 

be substantially further along in the 

construction timeline, such that 

switching the refrigerant to one that 

complies with the 700 GWP threshold 

could risk stranding alreadymanufactured, and already-purchased, 

VRF equipment inventory, as well as 

require developers to re-design, repermit, and in some cases, rebuild 

ongoing projects to accommodate a 

different VRF system (See Docket ID No. 

EPA–HQ–OAR–2021–0643–0242). We 

are therefore finalizing an extension to 

January 1, 2028, for installation of VRF 

systems where the project was issued a 

building permit prior to October 5, 

2023, where the building permit 

approves the use of an HFC or blend 

containing an HFC in a VRF system, and 

where the components of the VRF 

system were manufactured or imported 

prior to January 1, 2026. 

EPA is finalizing October 5, 2023, 

instead of October 24, 2023, as the date 

by which an approved building permit 

must have been issued to allow projects 

to install certain VRF systems until 

January 1, 2028, because this was the 

signature date of the October 2023 

Technology Transitions Rule, it aligns 

with the flexibility provided to entities 

in the October 2023 Technology 

Transitions Rule as described in section 

III.B. of this rule, and entities could 

have become aware of the Technology 

Transitions restrictions on or around 

this date. In addition, the commenter’s 

project that was issued an approved 

permit would not be adversely affected 

by this earlier date than their request. 

EPA can reasonably anticipate that 

there may be a discrete number of 

projects that may also have been issued 

building permits ahead of October 5, 

2023, that approve the use of an HFC or 

blend containing an HFC in VRF 

systems, and thus is providing this 

additional flexibility where these 

circumstances exist and the other 

conditions in this rule are met. 

Comment: Several commenters 

opposed the alternative proposal in the 

VRF Proposed Rule to limit the one-year 

extension to only those projects with an 

approved building permit that specified 

an HFC or blend containing an HFC and 

was issued prior to October 5, 2023 (See 

Docket ID No. EPA–HQ–OAR–2021– 

0643–0252, Docket ID No. EPA–HQ– 

OAR–2021–0643–0254, Docket ID No. 

EPA–HQ–OAR–2021–0643–0255, 

Docket ID No. EPA–HQ–OAR–2021– 

0643–0258). They said this alternative 

proposal is too narrow in comparison to 

the proposed extension. One commeter 

noted that it ‘‘would fail to resolve the 

inventory and order fulfillment 

concerns articulated by industry’’ (See 

Docket ID No. EPA–HQ–OAR–2021– 

0643–0255). 

Response: EPA agrees with these 

commenters. Based on its review of the 

comments received in total, EPA finds 

that a limited one-year extension solely 

for projects that were issued an 

approved building permit prior to 

October 5, 2023, will not provide 

sufficient relief to avoid stranding 


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inventory. Comments from multiple 

OEMs, distributors, developers, and 

trade associations provided information 

that indicated that a broad one-year 

extension was necessary to provide 

certainty to those looking to complete 

construction on projects with long 

timeframes. We are also cognizant that 

the compliance date for VRF systems is 

among the earlier deadlines of all the 

Technology Transitions program’s 

restrictions for assembled systems. The 

flexibility of a blanket one-year 

extension to January 1, 2027, to install 

components that were manufactured or 

imported by January 1, 2026, is 

intended to help smooth the transition. 

It provides some cushion to OEMs, 

distributors, and developers if roll-out 

of the new rule-compliant components 

are delayed in any way, ensuring that 

builders and installers will be able to 

depend on available supply of 

previously manufactured equipment for 

these systems to reliably meet the 

January 1, 2027, installation deadline. 

Comment: One commenter supported 

the alternative approach in the VRF 

Proposed Rule to limit the one-year 

installation compliance extension to 

only those projects that were issued an 

approved building permit with a 

specified HFC or blend containing an 

HFC, prior to October 5, 2023 (See 

Docket ID No. EPA–HQ–OAR–2021– 

0643–0260). This commenter 

questioned how much stranded 

inventory there would be since no data 

was provided by OEMs on the volume 

of potential stranded equipment. This 

commenter also encouraged the Agency 

to avoid continued compliance date 

extensions. 

Response: After reviewing the 

comments, EPA disagrees that it should 

finalize the alternative approach 

described in the VRF Proposed Rule 

since it is likely that far fewer projects 

would qualify for this one-year 

extension, which could result in 

stranding already-purchased VRF 

equipment. EPA instead agrees with 

other commenters that a broad one-year 

extension provides certainty and avoids 

stranding inventory. 

EPA recognizes that finalizing an 

extension to January 1, 2028, for 

projects that were issued a building 

permit prior to October 5, 2023, and 

where the building permit approves the 

use of an HFC or blend containing an 

HFC with a GWP above the threshold, 

provides one additional year beyond the 

alternative proposal that this commenter 

supported. EPA is finalizing this 

targeted extension to still limit the 

universe of who may qualify for 

additional time while addressing the 

needs of certain affected regulated 

entities to avoid stranding inventory. 

Comment: One commenter requested 

clarification on whether a VRFDedicated Outdoor Air System with a 

single direct expansion coil connected 

to a VRF condensing unit meets the 

definition of VRF systems under the 

Technology Transition Program and 

thus would be on the same timeline as 

other VRF systems. This commenter 

also asked if outdoor units which are 

tested in accordance with AHRI 1230 

and listed as VRF units, regardless of 

whether they are installed with one or 

multiple associated evaporators, would 

fall under this definition of VRF 

systems. 

Response: Air conditioning systems 

that have one indoor evaporator instead 

of two or more as described in the 

October 2023 Technology Transitions 

Rule, do not fall under the description 

of VRF systems in that rule. This 

rulemaking does not reconsider the 

description of VRF systems from the 

October 2023 Technology Transitions 

Rule. For purposes of the Technology 

Transitions program, the systems that 

the commenter described are considered 

residential and light commercial air 

conditioning and heat pump systems, 

and have an installation compliance 

date of January 1, 2026, when using 

components that are manufactured or 

imported prior to January 1, 2025. VRF 

systems described in this rule, which 

uses the same description as the one 

found in the October 2023 Technology 

Transitions Rule, do not cover all 

designs using VRF technology. For 

example, air-source VRF units with 

capacities below 65,000 BTU/h are not 

subject to this final rule and instead are 

regulated with other residential and 

light commercial air conditioning and 

heat pump systems. 

Comment: One commenter provided 

their estimate that the costs associated 

with an installation compliance 

deadline earlier than January 1, 2028, 

will be $112 million for a project 

currently under development (See 

Docket ID No. EPA–HQ–OAR–2021– 

0251). This project was issued an 

approved building permit prior to 

October 5, 2023. The costs that this 

commenter highlights stem from real 

estate taxes, land loan interest, 

insurance expenses, the equity costs of 

capital, cost of new VRF equipment, and 

the cost to re-design the building to 

accommodate incorporation of 

additional ventilation into the building 

to account for the flammability of the 

new refrigerant. 

Response: EPA appreciates comments, 

including in this case, with detailed 

information on cost breakdowns. EPA 

appreciates this commenter’s 

description of the cost impacts 

associated with a compliance deadline 

earlier than January 1, 2028. With EPA’s 

decision to extend the installation 

compliance deadline to January 1, 2028, 

for projects issued an approved building 

permit prior to October 5, 2023 and that 

meet the other conditions described in 

this rule, the commenters’ projected cost 

estimates, which EPA has not 

independently evaluated or verified, 

will in any case be avoided. 

Comment: One commenter suggested 

EPA change the definition of ‘‘install’’ to 

mean that VRF equipment are mounted 

in place, regardless of whether the fieldinstalled system is charged (See Docket 

ID No. EPA–HQ–OAR–2021–0275). 

Response: EPA is not adopting a 

change in the definition of ‘‘install’’ to 

its regulations. EPA defined that term in 

the October 2023 Technology 

Transitions Rule after a notice-andcomment rulemaking and did not 

reopen that definition in this 

rulemaking. As such, this request is 

outside the scope of this narrow 

rulemaking. Such a change would have 

far-reaching impacts on existing 

stakeholder plans to comply with the 

October 2023 Technology Transitions 

Rule in numerous subsectors. Other 

subsectors with an installation 

compliance deadline include, but are 

not limited to, chillers, industrial 

process refrigeration, and several retail 

food subsectors. Based on the 

information provided by this 

commenter, finalizing an additional 

year to install VRF systems in certain 

projects that were issued an approved 

building permit prior to October 5, 

2023, beyond the one year as proposed 

would also alleviate the commenter’s 

concerns and would not affect the 

broader Technology Transitions 

program. 

Comment: Two commenters stated 

that EPA did not give the real estate 

industry sufficient notice about this 

rule’s potential effects on the real estate 

industry. They note that NAICS codes 

that correspond to builders and 

developers were not used in the October 

2023 Technology Transitions Rule, the 

interim final rule issued in December 

2023 (88 FR 88825), or the VRF 

Proposed Rule (See Docket ID No. EPA– 

HQ–OAR–2021–0643–0273). One 

commenter called this a ‘‘major 

oversight’’ (See Docket ID No. EPA–HQ– 

OAR–2021–0643–0274). This 

commenter also mentioned that EPA set 

installation deadlines without engaging 

developers, and thus failed to 

meaningfully consider or discuss 

compliance needs and challenges of 

commercial and multifamily housing 


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7See AHRI’s Building Code Map, web page, 

accessed November 13, 2024. Available at https:// 

www.ahrinet.org/a2l-refrigerant-building-code-map. 

developers. As such, this commenter 

requested that EPA work with the real 

estate industry to set compliance 

deadlines, and the other commenter 

requested that EPA delay the 

installation compliance deadline. 

Response: EPA acknowledges that the 

October 2023 Technology Transitions 

Rule, interim final rule (88 FR 88825), 

and VRF Proposed Rule did not include 

NAICS codes for developers and general 

construction. EPA has included those 

codes in this final rule and will 

continue to include them where 

appropriate in further regulations under 

the Technology Transitions program. 

EPA disagrees that this means the 

Agency provided insufficient notice of 

the rule. Notice of EPA’s intention to 

regulate is provided through publication 

in the Federal Register. The list of 

NAICS codes within that document 

serves as a guide for readers regarding 

entities the EPA expects could 

potentially be affected, but EPA states 

that the list is not intended to be 

exhaustive, and that other types of 

entities not listed could also be affected. 

EPA received input from multiple 

developers and real estate-related trade 

associations during the comment period 

on this rule and the interim final rule, 

and has met with real estate developers 

before finalizing this rule. A record of 

meetings EPA held with stakeholders 

after publication of the VRF Proposed 

Rule on June 26, 2024, is included in 

the docket for this rule (See attachment 

1, Docket ID No. EPA–HQ–2021–0643– 

0276. EPA intends to continue its 

engagement with these stakeholders. 

Comment: One commenter suggested 

EPA should not set compliance 

deadlines until it develops a building 

code amendment strategy with model 

code bodies, state legislatures, and the 

buildings sector (See Docket ID No. 

EPA–HQ–OAR–2021–0643–0274). This 

commenter stated further that EPA 

should clarify the regulatory impacts 

that will arise on existing buildings’ air 

conditioning and chiller systems when 

they reach the end of their useful lives. 

In particular, this commenter noted that 

existing buildings would need to be 

retrofitted to accommodate new air 

conditioning systems using refrigerants 

with lower GWP but higher 

flammability ratings. Another 

commenter noted that the latest 

building codes, which harmonize 

requirements for lower-GWP A2L 

refrigerants, have not been adopted in 

numerous jurisdictions across the 

country, which makes it harder to 

comply with these installation 

compliance dates. Other commenters 

also noted that lack of consistent A2L 

requirements across building codes 

could result in an inability to complete 

construction for projects that have 

already been issued approved building 

permits. 

Response: This rule serves the limited 

purpose of extending compliance 

deadlines for the installation of new 

VRF systems. To the extent that 

commenters are identifying concerns 

regarding building codes as an 

impediment to compliance with the 

October 2023 Technology Transitions 

Rule deadline for installation of VRF 

systems, this rule only alleviates those 

concerns by extending that deadline by 

one year, or in specific cases, two years. 

This rule does not address the retrofit of 

buildings to accommodate new air 

conditioning systems with lower GWP 

and higher flammability ratings but EPA 

welcomes further discussion on this 

topic. As discussed in section III.F. of 

this preamble, in electing to provide 

additional time for compliance, the 

Agency is not revisiting or reopening its 

analysis of the AIM Act subsection (i)(4) 

factors with respect to VRF systems, as 

set forth in the October 2023 

Technology Transitions Rule preamble 

(88 FR 73177–73180). In that rule, EPA 

considered building codes as one factor 

of its assessment of the availability of 

substitutes for HFCs used in the VRF 

systems. As noted in that final 

preamble, model building codes for this 

subsector were updated in 2021 to 

incorporate the use of lower-GWP 

refrigerants (88 FR 73178). When EPA 

issued the October 2023 Technology 

Transitions Rule, it noted that 41 states 

had either updated state building codes 

or legislatively ensured that refrigerants 

classified as A2Ls (i.e., lower-GWP 

substitutes that can support compliance 

with the October 2023 Technology 

Transitions Rule restrictions) could be 

used (See attachment 5, p. 5–6, of 

Docket ID No. EPA–HQ–OAR–2021– 

0643–0227). At the time of this 

rulemaking, only Alaska, the District of 

Columbia, Kentucky, Massachusetts, 

Michigan, and Nevada have yet to 

update their codes or legislatively 

provide for the use of A2Ls in air 

conditioning (See attachment 2, Docket 

ID No. EPA–HQ–OAR–2021–0643– 

0276).7 Finally, with respect to 

regulatory impacts of the marginal cost 

of installing a new rule-compliant 

system at the end of the useful lives of 

existing systems, that comment is 

beyond the scope of this rule, which has 

the limited effect of extending the 

deadline for compliance for one air 

conditioning and heating subsector. 

Comment: One commenter, noting its 

engagement in other EPA partnerships, 

suggested that the Agency develop 

partnership programs with the real 

estate industry to drive the responsible 

and methodical phasedown of HFCs and 

appropriate building equipment 

transitions. 

Response: The establishment of 

potential partnership programs, or 

expansion of existing ones, is beyond 

the scope of this rulemaking. EPA 

welcomes additional opportunities for 

communication and collaboration with 

the real estate industry to successfully 

implement the phasedown of HFCs. 

Comment: Some commenters 

referenced issues outside the scope of 

this rulemaking or made inaccurate 

statements about rules promulgated 

under the AIM Act. One commenter 

noted concerns about how air 

conditioning systems used on boats are 

classified under the Technology 

Transitions program (See Docket ID No. 

EPA–HQ–OAR–2021–0643–0257). Two 

commenters requested EPA extend the 

installation compliance date for 

residential and light commercial air 

conditioning and heat pump systems 

beyond the time provided in the interim 

final rule (88 FR 88825) (See Docket ID 

No. EPA–HQ–OAR–2021–0643–0272 

and EPA–HQ–OAR–2021–0643–0273). 

One commenter noted that this 

rulemaking ‘‘would set the HFC 

production and consumption baseline 

levels from which reductions will be 

made [and] establish an initial 

methodology for allocating and trading 

HFC allowances for 2022 and 2023’’ 

(See Docket ID No. EPA–HQ–OAR– 

2021–0643–0267). 

Response: These comments are 

outside the scope of this rulemaking, 

which is solely related to an extension 

of the installation compliance date for 

VRF systems. 

D. Limiting the Environmental Impact of 

This Action 

EPA is narrowly tailoring this action 

to respond to stakeholder concerns 

about stranded inventory and longer 

construction timelines for projects that 

incorporate VRF systems while 

maintaining the human health and 

environmental benefits of the October 

2023 Technology Transitions Rule. To 

do so, EPA is granting the extension for 

installation of a VRF system only if all 

‘‘specified components’’ of that system 

are manufactured or imported prior to 

January 1, 2026. The term ‘‘specified 

component’’ is defined in the October 

2023 Technology Transitions Rule as 

‘‘condensing units, condensers, 


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100390 Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Rules and Regulations 

8Other components of an air conditioning or heat 

pump system such as valves or refrigerant piping 

are not restricted by the October 2023 Technology 

Transitions Rule and can be installed regardless of 

manufacture or import date. 

compressors, evaporator units, and 

evaporators’’ (88 FR 73112).8 As a 

result, the total number of VRF systems 

using HFCs, or blends containing HFCs, 

with a GWP above 700 installed in 2025, 

2026, and 2027 for projects that were 

issued an approved building permit 

prior to October 5, 2023, would match 

what the Agency modeled for 

installation before the January 1, 2026, 

deadline. The extra year that is being 

provided for installation of new VRF 

systems, and two years for certain 

installations, would not increase total 

demand for HFCs in VRF systems, but 

rather shift some of the modeled 

demand from 2025 into 2026 and 2027. 

Specified components manufactured 

or imported on or after January 1, 2026, 

remain subject to the restrictions of the 

October 2023 Technology Transitions 

Rule. Specifically, if they use or are 

intended for use with an HFC or a blend 

containing an HFC with a GWP of 700 

or greater, their use is limited to 

servicing previously installed systems. 

All the labeling, reporting, and 

recordkeeping requirements, as 

delineated in the October 2023 

Technology Transitions Rule, also 

continue to apply to components using, 

or intended to use, any regulated 

substance. 

EPA finds that providing additional 

time for installation effectively responds 

to stakeholder concerns about stranded 

inventory while remaining protective of 

the environmental benefits of the 

restrictions in the October 2023 

Technology Transitions Rule. This 

approach was suggested by industry 

stakeholders in their letter dated 

November 13, 2023, and it aligns with 

industry’s plans to transition VRF 

systems to use lower-GWP substitutes. 

E. How do the labeling, recordkeeping, 

and reporting provisions apply? 

The October 2023 Technology 

Transitions Rule requires labels on 

products and specified components that 

use regulated substances. The labeling 

requirement takes effect at the time of 

the manufacture and import prohibition 

for products and specified components. 

This timing reflects the primary purpose 

of the labels, which is for assessing 

compliance of products and systems in 

sectors and subsectors with active HFC 

restrictions. 

Consistent with the October 2023 

Technology Transitions Rule, this action 

does not require any new labeling for 

specified components intended for use 

in VRF systems that are manufactured 

in the United States or imported into the 

United States prior to January 1, 2026 

(i.e., existing inventory). This action 

also does not change the labeling 

requirements for specified components 

used in VRF systems that are 

manufactured or imported after January 

1, 2026. As such, they must be labeled 

with the following: (1) the statement 

‘‘For servicing existing equipment 

only,’’ (2) the HFC or blend containing 

an HFC that is used or intended for use, 

and (3) the date of manufacture. 

This labeling is particularly important 

to distinguish between components 

manufactured or imported before 

January 1, 2026, which are not subject 

to restrictions, from those that are 

manufactured or imported on or after 

January 1, 2026, which may be subject 

to the GWP limit depending on whether 

it is new or intended for servicing 

existing equipment. For a complete 

description of the Technology 

Transitions program labeling 

requirements, including formatting 

requirements, please refer to the October 

2023 Technology Transitions Rule, or 40 

CFR 84.58. 

The October 2023 Technology 

Transitions Rule established 

recordkeeping and reporting 

requirements for any entity that 

manufactures or imports products or 

specified components that use or are 

intended to use HFCs in the sectors and 

subsectors covered in that rule. The 

reporting period for all sectors and 

subsectors starts on January 1, 2025, and 

the first reports covering the 2025 

calendar year must be submitted to the 

Agency by March 31, 2026. This action 

does not add to nor modify the existing 

reporting and recordkeeping 

requirements for specified components. 

This rule does not establish new 

reporting and recordkeeping 

requirements related to the sale or 

installation of components 

manufactured or imported prior to 

January 1, 2025. However, EPA notes 

that entities that intend to rely on the 

flexibility associated with the date of 

their approved building permit should 

maintain that approved building permit 

as a record and have it available for 

inspection, if requested. Reporting and 

recordkeeping requirements finalized in 

the October 2023 Technology 

Transitions Rule are still applicable for 

specified VRF components that are 

manufactured in the United States or 

imported into the United States on or 

after January 1, 2025. 

F. Evaluation of the Subsection (i)(4) 

Factors 

Subsection (i)(4) of the AIM Act 

directs EPA to factor in, to the extent 

practicable and using best available 

data, various considerations when 

carrying out a rulemaking under 

subsection (i). As discussed in detail in 

the preamble to the October 2023 

Technology Transitions Rule, EPA 

views subsection (i)(4)(A) through (D) as 

providing overarching direction for 

setting restrictions under subsection (i) 

(88 FR 73129–73141). In this action, 

EPA did not reconsider the 

interpretations provided in the October 

2023 Technology Transitions Rule 

regarding how it considers the factors 

laid out in subsection (i)(4). Nor did the 

Agency revisit or reopen its analysis of 

the (i)(4) factors with respect to VRF 

systems as set forth in the October 2023 

Technology Transitions Rule preamble 

(88 FR 73177–73180). However, in 

finalizing this narrow adjustment to the 

installation compliance date for VRF 

systems, EPA considered the (i)(4) 

factors to the extent practicable, as 

applicable to the Agency’s adjustment of 

that compliance date. 

The issue being addressed by this 

final rule was brought to the Agency’s 

attention by stakeholders impacted by 

the October 2023 Technology 

Transitions Rule after the issuance of 

that rule. As noted in EPA’s discussion 

of subsection (i)(4)(A), in addition to 

information generated by other 

governing bodies and agencies, the 

Agency considered information 

provided by industry, environmental 

non-governmental organizations, trade 

associations, academia, standard-setting 

bodies, and more (88 FR 73129). EPA 

acknowledges that in some cases, 

regulated entities may be best situated 

to identify best available information, 

particularly regarding implementation 

challenges. 

With respect to the Agency’s 

evaluation of the availability of 

substitutes under subsection (i)(4)(B), 

EPA previously determined that 

substitutes with a GWP less than 700 are 

available effective January 1, 2026, for 

VRF systems. EPA did not change that 

determination and continues to find that 

substitutes with a GWP less than 700 

will be available January 1, 2026, for 

these systems. Manufacturers and 

importers in this subsector are currently 

making or importing VRF systems and 

components with lower-GWP 

refrigerants for other markets and are 

prepared to meet the January 1, 2026, 

manufacture and import compliance 

date for such systems. This action did 

not reconsider the Agency’s prior 


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Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Rules and Regulations 100391 

evaluation of the availability of 

substitutes for meeting the use 

restrictions issued in the October 2023 

Technology Transitions Rule for VRF 

systems; rather, this action addresses 

the disposition of components 

manufactured in the United States or 

imported into the United States before 

January 1, 2026. 

This rule to adjust the installation 

compliance date for VRF systems was 

motivated by the policy goal of avoiding 

the negative environmental and 

economic impacts of stranding 

inventory where possible, while 

recognizing that the AIM Act authorizes 

the Agency to establish use restrictions 

where appropriate for sectors and 

subsectors to move away from the use 

of high-GWP HFCs. These goals are 

consistent with the direction in 

subsection (i)(4)(C), which instructs the 

Agency to factor in, to the extent 

practicable, overall economic costs and 

environmental impacts, as compared to 

historical trends. As discussed in the 

October 2023 Technology Transitions 

Rule, EPA interprets (i)(4)(C) as 

purposefully accommodating different 

types and degrees of analysis of 

economic costs and environmental 

impacts, including costs and impacts 

that may be difficult to quantify (88 FR 

73138). The narrow adjustment in this 

final rule reduces the potential to 

unintentionally strand equipment used 

in VRF systems, while still achieving a 

prompt transition for this equipment. 

Specifically, even with the adjustments 

in this final rule, manufacturers and 

importers of components for new VRF 

systems will be required in the near 

term (i.e., before January 1, 2026) to 

transition away from using HFCs or 

blends containing HFCs with a GWP 

above 700 in those components, and 

developers and builders will not be 

allowed to install new systems that use 

non-compliant regulated substances 

beginning January 1, 2027 (or January 1, 

2028, in limited circumstances). This 

action does not affect the overall 

consumption of HFCs because EPA does 

not anticipate a change in the amount of 

new VRF equipment that will be 

manufactured or imported prior to 

January 1, 2026. Further discussion of 

environmental impacts can be found in 

section III.D. 

Finally, subsection (i)(4)(D) directs 

the Agency to factor in, to the extent 

practicable, the remaining phasedown 

period for regulated substances under 

the allowance allocation program. The 

reduction in the supply of HFCs is an 

important factor supporting compliance 

dates and GWP limits that are as 

stringent as feasible under the analysis 

of all the (i)(4) factors. This rule will not 

materially affect the demand for HFCs 

because it limits installations to 

components that are manufactured or 

imported before January 1, 2026. The 

effect of this rule is to extend the 

installations that EPA modeled to occur 

in 2025 over the two-year period of 2025 

and 2026, with further limited 

installations extending into 2027 for 

projects issued an approved building 

permit prior to October 5, 2023, 

providing the other criteria established 

in this rule are met. 

G. Negotiated Rulemaking 

Prior to proposing a rule, subsection 

(i)(2)(A) of the AIM Act directs EPA to 

consider negotiating with stakeholders 

in the sector or subsector subject to the 

potential rule in accordance with 

negotiated rulemaking procedures 

established under subchapter III of 

chapter 5 of title 5, United States Code 

(commonly known as the ‘‘Negotiated 

Rulemaking Act of 1990’’). If EPA makes 

a determination to use the negotiated 

rulemaking procedures, subsection 

(i)(2)(B) requires that EPA, to the extent 

practicable, give priority to completing 

that rulemaking over completing 

rulemakings under subsection (i) that 

are not using that procedure. If EPA 

does not use the negotiated rulemaking 

process, subsection (i)(2)(C) requires the 

Agency to publish an explanation of the 

decision not to use that procedure 

before commencement of the 

rulemaking process. A discussion on 

EPA’s consideration of using negotiated 

rulemaking procedures and its decision 

not to use such procedures prior to 

proposal can be found in section II.G. of 

the VRF Proposed Rule (89 FR 53378– 

53380; June 26, 2024). 

IV. Judicial Review 

The AIM Act regulations promulgated 

herein may be challenged in the United 

States Court of Appeals for the District 

of Columbia Circuit. Pursuant to section 

307(b)(1) of the CAA, petitions for 

judicial review of the AIM Act 

regulations must be filed in that court 

within 60 days after the date notice of 

this final action is published in the 

Federal Register. 

The AIM Act provides that certain 

sections of the 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 on judicial review. 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.’’ 

The AIM Act regulations promulgated 

herein are ‘‘nationally applicable 

regulations’’ within the meaning of CAA 

section 307(b)(1). These regulations 

establish regulatory requirements 

applicable across the entire United 

States to implement restrictions under 

subsection (i) of the AIM Act. The 

regulations promulgated herein amend 

an existing nationally applicable 

regulation by adjusting a compliance 

deadline for certain systems. The 

deadlines in the amended regulation 

and the conditions required to qualify 

for those extended deadlines are 

nationally applicable to all affected 

entities. Accordingly, under section 

307(b)(1) of the CAA, petitions for 

judicial review of these AIM Act 

regulations must be filed in the United 

States Court of Appeals for the District 

of Columbia Circuit by February 10, 

2025. 

V. Statutory and Executive Order 

Reviews 

Additional information about these 

statutes and Executive Orders can be 

found at https://www.epa.gov/lawsregulations/laws-and-executive-orders. 

A. Executive Order 12866: Regulatory 

Planning and Review and Executive 

Order 14094: Modernizing Regulatory 

Review 

This action is not a significant 

regulatory action as defined in 

Executive Order 12866, as amended by 

Executive Order 14094, and was 

therefore not subject to a requirement 

for Executive Order 12866 review. 

B. Paperwork Reduction Act (PRA) 

This action does not impose an 

information collection burden under the 

PRA because it does not contain any 

information collection activities. 

C. Regulatory Flexibility Act (RFA) 

I certify that this action will not have 

a significant economic impact on a 

substantial number of small entities 

under the RFA. In making this 

determination, EPA concludes that the 

impact of concern for this rule is any 

significant adverse economic impact on 

small entities and that the Agency is 

certifying that this rule would not have 

a significant economic impact on a 

substantial number of small entities 


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100392 Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Rules and Regulations 

because the rule would relieve 

regulatory burden on the small entities 

subject to the rule. This rule will 

prevent the stranding of components 

used to install VRF systems. EPA 

therefore concluded that this action will 

relieve regulatory burden for all directly 

regulated small entities. 

D. Unfunded Mandates Reform Act 

(UMRA) 

This action does not contain an 

unfunded mandate of $100 million 

(adjusted annually for inflation) or more 

(in 1995 dollars) as described in UMRA, 

2 U.S.C. 1531–1538, and does not 

significantly or uniquely affect small 

governments. 

E. Executive Order 13132: Federalism 

This action does not have federalism 

implications. It will not have substantial 

direct effects on the states, on the 

relationship between the national 

government and the states, or on the 

distribution of power and 

responsibilities among the various 

levels of government. 

F. Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

This action does not have tribal 

implications as specified in Executive 

Order 13175. It will not have substantial 

direct effects on tribal governments, on 

the relationship between the Federal 

government and Indian tribes, or on the 

distribution of power and 

responsibilities between the Federal 

government and Indian tribes, as 

specified in Executive Order 13175. 

Thus, Executive Order 13175 does not 

apply to this action. 

G. Executive Order 13045: Protection of 

Children From Environmental Health 

and Safety Risks 

EPA interprets Executive Order 13045 

as applying only to those regulatory 

actions that concern environmental 

health or safety risks that EPA has 

reason to believe may 

disproportionately affect children, per 

the definition of ‘‘covered regulatory 

action’’ in section 2–202 of the 

Executive Order. This action is narrowly 

tailored to prevent the stranding of 

certain air conditioning and heat pump 

equipment using VRF technology while 

not affecting the demand for HFCs. 

Therefore, this action is not subject to 

Executive Order 13045 because it does 

not concern an environmental health 

risk or safety risk. Since this action does 

not concern human health, EPA’s Policy 

on Children’s Health also does not 

apply. 

H. Executive Order 13211: Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use 

This action is not subject to Executive 

Order 13211, because it is not a 

significant regulatory action under 

Executive Order 12866. 

I. National Technology Transfer and 

Advancement Act (NTTAA) 

This rulemaking does not involve 

technical standards. 

J. Executive Order 12898: Federal 

Actions To Address Environmental 

Justice in Minority Populations and 

Low-Income Populations and Executive 

Order 14096: Revitalizing Our Nation’s 

Commitment to Environmental Justice 

for All 

EPA believes that this type of action 

does not concern human health or 

environmental conditions and therefore 

cannot be evaluated with respect to 

potentially disproportionate and 

adverse effects on communities with 

environmental justice concerns. This 

action is narrowly tailored to prevent 

the stranding of inventory of air 

conditioning and heat pump equipment 

using VRF technology while not 

affecting the demand for HFCs. 

Although this action does not concern 

human health or environmental 

conditions, EPA identified and 

addressed environmental justice 

concerns within the October 2023 

Technology Transitions Rule (88 FR 

73098; October 24, 2023). 

K. Congressional Review Act (CRA) 

This action is subject to the CRA, and 

the EPA will submit a rule report to 

each House of the Congress and to the 

Comptroller General of the United 

States. This action is not a ‘‘major rule’’ 

as defined by 5 U.S.C. 804(2). 

List of Subjects in 40 CFR Part 84 

Environmental protection, 

Administrative practice and procedure, 

Air pollution control, Chemicals, 

Imports, Reporting and recordkeeping 

requirements. 

Michael S. Regan, 

Administrator. 

For the reasons set forth in the 

preamble, the EPA amends 40 CFR part 

84 as follows: 

PART 84—PHASEDOWN OF 

HYDROFLUOROCARBONS 

■ 1. The authority citation for part 84 

continues to read as follows: 

Authority: Pub. L. 116–260, Division S, 

Sec. 103. 

Subpart B—Restrictions on the Use of 

Hydrofluorocarbons 

■ 2. Amend § 84.54 by revising 

paragraph (c)(2) to read as follows: 

§ 84.54 Restrictions on the use of 

hydrofluorocarbons. 

* * * * * 

(c) * * * 

(2) Effective January 1, 2026, variable 

refrigerant flow systems for use as 

residential or light commercial airconditioning or heat pumps, using a 

regulated substance, or a blend 

containing a regulated substance, with a 

global warming potential of 700 or 

greater. Such new variable refrigerant 

flow systems using a regulated 

substance, or a blend containing a 

regulated substance, with a global 

warming potential of 700 or greater may 

be installed prior to January 1, 2027, 

where all specified components of that 

system are manufactured or imported 

prior to January 1, 2026. Such new 

variable refrigerant flow systems using a 

regulated substance, or a blend 

containing a regulated substance, with a 

global warming potential of 700 or 

greater may be installed prior to January 

1, 2028, when an approved building 

permit issued prior to October 5, 2023, 

specifies the use of a restricted regulated 

substance, or blend containing a 

restricted regulated substance, in such 

system detailed in that building permit, 

and where all specified components of 

that system are manufactured or 

imported prior to January 1, 2026. 

* * * * * 

[FR Doc. 2024–29243 Filed 12–11–24; 8:45 am] 

BILLING CODE 6560–50–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 73 

[MB Docket No. 24–224; RM–11988; DA 24– 

1188; FR ID 266282] 

Television Broadcasting Services 

Lubbock, Texas. 

AGENCY: Federal Communications 

Commission. 

ACTION: Final rule. 

SUMMARY: The Video Division, Media 

Bureau (Bureau), has before it a Notice 

of Proposed Rulemaking issued in 

response to a Petition for Rulemaking 

filed by Gray Television Licensee, LLC 

(Gray) and SagamoreHill of Lubbock, 

LLC (SagamoreHill and collectively, the 

Petitioners), the licensees of two 

Lubbock, Texas stations; KCBD, 

operating on channel 11, and KJTV–TV, 


ddrumheller on DSK120RN23PROD with RULES1