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HCFC Allowance System

EPA developed a marketable allowance system to help the United States phase out its production and consumption of hydrochlorofluorocarbonsHelphydrochlorofluorocarbonsCompounds containing hydrogen, fluorine, chlorine, and carbon atoms. Although ozone depleting substances, they are less potent at destroying stratospheric ozone than chlorofluorocarbons (CFCs). They have been introduced as temporary replacements for CFCs and are also greenhouse gases. See ozone depleting substance. (HCFCs), as agreed to under the Montreal Protocol. The allowance system provides flexibility for industry to operate efficiently while ensuring the United States meets its agreements under the Montreal Protocol.

Producers and importers are allocated HCFC allowances based on historical production and import activity. Allowances can be traded between producers and importers. A company expends one allowance for each kilogram of HCFC it produces or imports. If a producer or importer expends its allowances to make HCFCs and then exports those HCFCs, the producer or importer may request additional allowances equal to the amount exported. The system aims to balance the global output of HCFCs.

HCFC Allowance Allocations

EPA has allocated annual allowances for HCFC production, import, and export several times since the system was established in 2003. These allowance allocations have allowed the United States to over-comply with its commitments under the Montreal Protocol's HCFC phaseout schedule. The most recent allowance allocation rule, published in 2019, finalized HCFC allocations for 2020 through 2029.

Persons Holding Allowances for Class II Substances

Persons that hold baseline allowances to produce and/or import HCFC-22, HCFC-142b, HCFC-123, and HCFC-124 are listed in 40 CFR 82.19. The table below lists these persons as of October 2014.

Person Controlled Substance for Which a Person Holds Baseline Consumption Allowances
ABCO Refrigeration Supply HCFC-22
Altair Partners HCFC-22
Arkema HCFC-22
Carrier HCFC-22
Continental Industrial Group HCFC-141b
Coolgas, Inc. HCFC-141b
Combs Investment Property HCFC-124
Discount Refrigerants HCFC-141b
DuPont HCFC-22
H.G. Refrigeration Supply HCFC-22
Honeywell HCFC-22
ICC Chemical Corp. HCFC-141b
Mexichem Fluor Inc. HCFC-22
Kivlan & Company HCFC-22
MDA Manufacturing HCFC-22
Mondy Global HCFC-22
National Refrigerants HCFC-22
Perfect Technology Center, LP HCFC-123
Refricenter of Miami HCFC-22
Refricentro HCFC-22
R-Lines HCFC-22
Saez Distributors HCFC-22
Solvay Fluorides, LLC HCFC-22
Solvay Specialty Polymers USA, LLC HCFC-142b
Tulstar Products HCFC-141b
USA Refrigerants HCFC-22