In April 2024, the Environmental Protection Agency (EPA) of the United States filed its first administrative lawsuit under the American Innovation and Manufacturing (AIM) Act of 2020. The defendant, USA Wholesale, a distributor of automotive lubricants, allegedly imported hydrofluorocarbons (HFCs) illegally through American ports in 2022.
This company was intercepted while attempting to illegally import 34,480.3 pounds of HFC-134a (Ethane, 1,1,1,2-tetrafluoro-), a potent greenhouse gas used as a coolant and propellant. This chemical, which has a global warming potential more than 1,300 times that of carbon dioxide, could have resulted in emissions equivalent to the annual CO2 output for 4,414 households if released into the atmosphere.
EPA initially recommended that Customs and Border Protection deny entry to a particular shipment, which was later re-imported nonetheless. Consequently, EPA has resolved to pursue administrative action against the involved company and is seeking applicable fines.
What’s AIM Act？
The AIM Act, passed in 2020 under the Montreal Protocol, is key environmental legislation aimed at cutting greenhouse gas emissions by phasing down the use of hydrofluorocarbons (HFCs), potent gases used in cooling and aerosol products. By 2036, the U.S. aims to reduce HFC production and consumption by 85%.
Since January 2022, the EPA and Customs and Border Protection have successfully blocked over 80 shipments of illegal HFCs, enforcing the agency’s phasedown policy that mandates importers to stay within assigned quotas for these substances.
As global efforts to phase out high GWP refrigerants intensify, Chinese companies must focus on advancing their R&D to develop efficient, low-GWP refrigerants to strengthen international collaborations. Those with U.S. subsidiaries and involved in refrigerant imports can enhance their market position by engaging in quota applications. ChemRadar will continue to provide updates on global HFC trends.
