Background on HFCs and the AIM Act

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What is the AIM Act?

On December 27, 2020, the American Innovation and Manufacturing (AIM) Act of 2020 was enacted as section 103 in Division S, Innovation for the Environment, of the Consolidated Appropriations Act, 2021 (H.R. 133 (116th): Consolidated Appropriations Act, 2021 [Including Coronavirus Stimulus & Relief]). The AIM Act authorizes EPA to address hydrofluorocarbons (HFCs) by providing new authorities in three main areas: to phase down the production and consumption of listed HFCs, manage these HFCs and their substitutes, and facilitate the transition to next-generation technologies through sector-based restrictions.

AIM Act Enforcement

Sector Fact Sheets

HFCs are used in applications such as air conditioning, refrigeration, fire suppression, solvents, foam blowing agents, and aerosols. HFCs are greenhouse gases with global warming potentials (GWPs) that can be hundreds to thousands of times more potent than carbon dioxide (CO2). Their use has been rapidly increasing worldwide due to the global phaseout of ozone-depleting substances (ODS) and increased demand for refrigeration and air conditioning. In many cases, alternatives are available or under development that either non-fluorinated or are HFC and HFC blends with lower GWPs than the HFC or HFC blends they replace. These documents provide information on uses of HFCs and low-GWP alternatives to high-GWP HFCs.

Kigali Amendment to the Montreal Protocol

The Kigali Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer is an international agreement to phase down the production and consumption of HFCs by 80 – 85% by 2047. Its full implementation is expected to avoid up to half a degree Celsius of global warming by the end of the century. HFCs are commonly used alternatives to ODS such as hydrochlorofluorocarbons (HCFCs) and chlorofluorocarbons (CFCs), which are already controlled under the Montreal Protocol. The United States ratified the Kigali Amendment on October 31, 2022, with strong support from the U.S. environmental and business communities.

Inflation Reduction Act Provisions for AIM Act Implementation

Inflation Reduction Act Provisions for AIM Act Implementation

Through the Inflation Reduction Act, the EPA has received an historic amount of funding to leverage our expertise and existing programs, as well as to set up and execute new programs. Implemented by the EPA’s Office of Air and Radiation, these programs include funding for projects addressing clean energy, transportation, methane emissions, and climate-damaging HFCs, and will advance the EPA’s bold agenda to combat the climate crisis, protect public health, and advance environmental justice.

Inflation Reduction Act funding includes $38.5 million to carry out implementation of and compliance with the AIM Act. Of this funding, $15 million is for competitive grants for reclaim and innovative destruction technologies.

Notice of Funding Opportunity

On November 17, 2023, the EPA announced the availability of funds for the HFC Reclaim and Innovative Destruction Grants. The HFC Reclaim and Innovative Destruction Grants provide approximately $15 million in grants to eligible entities to develop projects for HFC reclaim and innovative destruction technologies.

Additional Resources