Diversified CPC International (DCPC) is urging the US Environmental Protection Agency (EPA) to empower domestic manufacturers of products with hydrofluorocarbons (HFCs) to fairly compete with foreign manufacturers during the HFC phase-down, which comes into effect on 1 January.
The phase-down is part of the American Innovation and Manufacturing (AIM) Act, which was enacted in December 2020 to reduce HFC production and consumption by 85% over the next 15 years, through an allowance and trading programme. However, the baseline for the allowance structure does not include imported products containing HFCs (IPC). A final rule establishing the trading system is expected before the end of the month.
As a producer and distributor of environmentally-friendly products, including propellants, refrigerants and speciality gas products, DCPC said it felt ‘compelled’ to provide input on behalf of its customers and industry trade and association partners, which collectively represent more than 200,000 employees, over $180 billion (€152 billion) in annual revenue, and 51% of the total US Gross Domestic Product.
“We understand that the EPA is required by the AIM Act to restrict the supply of HFCs (including imports) in the US,” Bill Auriemma, president and CEO of DCPC said in his communication to the director of the EPA’s Office of Air and Radiation.
“Therefore, we suggest the EPA must also require allowances for IPC starting in 2022 to keep with the intent of the AIM Act, which is to keep US workers and manufactures competitive with (imported) products which are sold in the US.
“To do otherwise, or to delay in addressing this key issue until 2024, will result in an unlevel playing field for US manufacturers. The negative impact of this type of error will include the potential loss of tens of thousands of good-paying American manufacturing jobs and a substantial reduction in tax revenue for the US.”
Look out for a more in-depth look at the HFC phase-down plans in our September/October edition.