Environmental Protection Agency: Phasedown of Hydrofluorocarbons: Reconsideration of Certain Regulatory Requirements Promulgated Under the Technology Transitions Provisions of the American Innovation and Manufacturing Act of 2020

B-338440

June 10, 2026

The Honorable Shelley Moore Capito
Chairman
The Honorable Sheldon Whitehouse
Ranking Member
Committee on Environment and Public Works
United States Senate

The Honorable Brett Guthrie
Chairman
The Honorable Frank Pallone, Jr.
Ranking Member
Committee on Energy and Commerce
House of Representatives

Subject: Environmental Protection Agency: Phasedown of Hydrofluorocarbons: Reconsideration of Certain Regulatory Requirements Promulgated Under the Technology Transitions Provisions of the American Innovation and Manufacturing Act of 2020

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Environmental Protection Agency (EPA) entitled “Phasedown of Hydrofluorocarbons: Reconsideration of Certain Regulatory Requirements Promulgated Under the Technology Transitions Provisions of the American Innovation and Manufacturing Act of 2020” (RIN: 2060-AW35). We received the rule on May 21, 2026. It was published in the Federal Register on May 26, 2026. 91 Fed. Reg. 31284. The effective date of the rule is July 27, 2026.

According to EPA, this rule finalizes changes to regulations promulgated under the Technology Transitions provision of the American Innovation and Manufacturing Act of 2020, which authorizes the EPA Administrator to restrict fully, partially, or on a graduated schedule, the use of a “regulated substance” in the sector or subsector in which they are used. The rule addresses administrative petitions and input received from regulated industry and other interested parties relevant to requirements and restrictions across various refrigeration and air conditioning subsectors. The rule also allows the inventory of residential and light commercial air conditioning and heat pump equipment that was manufactured in the U.S. or imported into the U.S. before January 1, 2025, to continue to be installed.

Enclosed is our assessment of EPA's compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any questions about this report or wish to contact GAO officials responsible for the evaluation work relating to the subject matter of the rule, please contact me (202) 512-8156.

Shirley A. Jones
Managing Associate General Counsel

Enclosure

ENCLOSURE

REPORT UNDER 5 U.S.C. § 801(a)(2)(A) ON A MAJOR RULE
ISSUED BY THE
ENVIRONMENTAL PROTECTION AGENCY
ENTITLED
“PHASEDOWN OF HYDROFLUOROCARBONS:
RECONSIDERATION OF CERTAIN REGULATORY REQUIREMENTS PROMULGATED UNDER THE TECHNOLOGY TRANSITIONS PROVISIONS OF
THE AMERICAN INNOVATION AND MANUFACTURING ACT OF 2020”
(RIN: 2060-AW39)

(i) Cost-benefit analysis

The Environmental Protection Agency (EPA) prepared an analysis of the costs and benefits of this rule. 91 Fed. Reg. 31284, 31286 (May 26, 2026). EPA estimated engineering cost savings in affected subsectors of $976 million in present value at a three percent discount rate and $56 million in equivalent annualized value at a three percent discount rate. Id. EPA estimated engineering cost savings in affected subsectors of $653 million in present value at a seven percent discount rate and $56 million in equivalent annualized value at a seven percent discount rate. Id. EPA also analyzed non-monetized benefits and cost savings, including avoided loss of ability to produce semiconductor wafers within the U.S. as well as national security benefits. Id. Finally, EPA also analyzed non-monetized costs and foregone benefits, including indirect costs via hydrofluorocarbon (HFC) market impacts, costs to equipment manufacturers and suppliers related to incremental investments required, and foregone benefits from potential increased emissions of HFCs. Id.

(ii) Agency actions relevant to the Regulatory Flexibility Act (RFA), 5 U.S.C. §§ 603–605, 607, and 609

The EPA Administrator certified that this rule will not have a significant economic impact on a substantial number of small entities under RFA. 91 Fed. Reg. at 31329.

(iii) Agency actions relevant to sections 202–205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. §§ 1532–1535

According to EPA, this rule does not contain any unfunded mandate as described in the Act and does not significantly or uniquely affect small governments. 91 Fed. Reg. at 31329. EPA stated that the rule imposes no enforceable duty on any state, local, or Tribal government, or on the private sector. Id.

(iv) Other relevant information or requirements under acts and executive orders

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.

On October 3, 2025, EPA published a notice of proposed rulemaking. 90 Fed. Reg. 47999. EPA stated that they received comments from various parties. See 91 Fed. Reg. at 31301. EPA responded to comments in this rule. Id. at 31301–28.

Paperwork Reduction Act (PRA), 44 U.S.C. §§ 3501–3520

EPA determined that this rule contains no information collection requirements under the Act. 91 Fed. Reg. at 31328.

Statutory authorization for the rule

EPA promulgated this rule pursuant to section 7675(i) of title 42, United States Code.

Executive Order No. 12866 (Regulatory Planning and Review)

EPA stated that this rule is significant under the Order and was submitted to the Office of Management and Budget for review. 91 Fed. Reg. at 31328.

Executive Order No. 13132 (Federalism)

EPA determined that this rule does not have federalism implications. 91 Fed. Reg. at 31329.