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Andrew D. Shroads, QEP
614.887.7227 • ashroads@scainc.com
PO Box 1276
Westerville, OH 43086
While every effort has been made to ensure the accuracy of this information, SC&A is not
responsible for any errors or omissions. This information is not a substitute for professional
environmental consulting services. If legal services are required, consult with legal counsel.
What is SNAP?
Significant New Alternatives Policy (SNAP)
• 1994 regulations for identifying and approving of substitute
materials for Class I or Class II ozone depleting substances
◦ Replacement compounds for chlorofluorocarbons (CFCs)
in refrigeration, foam-blowing, aerosols, air conditioning,
and fire suppression
◦ Approved compounds are mostly hydrofluorocarbons
(HFCs), which are potent greenhouse gases (GHGs)
• In the 2015 update to SNAP regulations, EPA moved
previously approved HFCs to the unacceptable category
◦ EPA required use of other replacement compounds
◦ EPA issued a tiered phasedown of various HFCs from
2015 through 2022
2
Judgement Day
Mexichem Fluor, Inc. v. EPA
• The U.S. Court of Appeals for the District of Columbia (DC)
Circuit decided that EPA does not have the statutory
authority to require replacements for HFCs
◦ No. 15-1328 (D.C. Cir. 2017), decided August 8, 2017
◦ Section 612 of the Clean Air Act does not allow EPA to
replace HFCs, just CFCs
◦ DC Circuit Court vacated the 2015 rule to the extent it
required manufacturers to replace HFCs
• DC Circuit Court is allowing EPA to try again
◦ Try again with the Clean Air Act Section 612
using “retroactive disapproval”
◦ EPA could phasedown HFCs under another statute
3
EPAResponse
Three Step Program
1. Guidance on 2015 HFC category changes
◦ EPA will not enforce the 2015 requirements for HFC
restrictions or unacceptability
2. Propose a new rule
◦ Should EPA regulate HFCs a different way or use a
different authority?
3. Hold a meeting
◦ Stakeholder meeting scheduled from 9:30 AM to 12:30
PM EDT on Friday, May 4, 2018, at EPA
4
Step 1 – Enforcement
• EPA will not enforce any of the changes to use restrictions
or unacceptability listings in the 2015 rule
◦ 2015 through 2022 phase-out dates for HFCs will not be
enforced by EPA
▪ Manufacturers will continue to sell and make products
with HFCs
▪ HFCs can continue to be sold
◦ Hydro-chlorofluorocarbon (HCFC) decisions that were
part of the 2015 rule will continue to be enforced,
because they were not subject to the court decision
5
Step 2 – TryAgain
• EPA will continue to pursue HFC reductions via a new
notice-and-comment rulemaking
◦ Rewrite the 1994 SNAP rule
▪ Regulate only those who have not replaced CFCs yet
◦ Draft new requirements for end-users
▪ Current requirements are for manufacturers
◦ Retroactive disapproval
▪ Court decision identified three big hurdles
◦ Regulate under another statute
▪ Toxic Substances Control Act
▪ National Emission Standard for Hazardous Air Pollutants
▪ Prevention of Significant Deterioration
◦ And others…
6
Step 3 – Stakeholder Meeting
• EPA will host a meeting to discuss the Court decision and
notice-and-comment rulemaking
◦ 9:30 AM to 12:30 PM EDT on Friday, May 4, 2018
◦ EPA William Jefferson Clinton East Building
Room 1153
1201 Constitution Avenue NW
Washington, DC 20004
◦ RSVP by April 27, 2018 by contacting Chenise
Farquharson at farquharson.chenise@epa.gov
◦ Information available on the EPA website:
https://www.epa.gov/snap
7
Why?
Why is the current EPA administration intent on keeping a
rule that reduces GHG emissions?
• Domestic manufacturers are creating new compounds
that are not GHGs or ozone depleting substances
◦ Maintain profit margins while replacement compounds
are protected by patent
◦ New products are being sold around the world, but no
market in United States
◦ New regulations create a domestic market
8
OtherActions
• Kigali Amendment to the Montreal Protocol
◦ As the Montreal Protocol forced nations to move away
from CFCs, GHG emissions increase from HFCs
◦ Removing HFCs as acceptable alternatives would
ensure no increase in HFC / GHG emissions
◦ Kigali amendment agreed to on October 15, 2016
◦ Department of State currently considering Kigali
Amendment, which requires Senate approval
• American Innovation & Manufacturing Act sponsored by
Senators John Kennedy (R-LA) & Tom Carper (D-DE)
◦ Would give EPA new authority to regulate HFCs
◦ Allowance and trading program
◦ Ratifies the Kigali Amendment
9

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Changes to Significant New Alternative Policy (SNAP)

  • 1. More SNAP Andrew D. Shroads, QEP 614.887.7227 • ashroads@scainc.com PO Box 1276 Westerville, OH 43086 While every effort has been made to ensure the accuracy of this information, SC&A is not responsible for any errors or omissions. This information is not a substitute for professional environmental consulting services. If legal services are required, consult with legal counsel.
  • 2. What is SNAP? Significant New Alternatives Policy (SNAP) • 1994 regulations for identifying and approving of substitute materials for Class I or Class II ozone depleting substances ◦ Replacement compounds for chlorofluorocarbons (CFCs) in refrigeration, foam-blowing, aerosols, air conditioning, and fire suppression ◦ Approved compounds are mostly hydrofluorocarbons (HFCs), which are potent greenhouse gases (GHGs) • In the 2015 update to SNAP regulations, EPA moved previously approved HFCs to the unacceptable category ◦ EPA required use of other replacement compounds ◦ EPA issued a tiered phasedown of various HFCs from 2015 through 2022 2
  • 3. Judgement Day Mexichem Fluor, Inc. v. EPA • The U.S. Court of Appeals for the District of Columbia (DC) Circuit decided that EPA does not have the statutory authority to require replacements for HFCs ◦ No. 15-1328 (D.C. Cir. 2017), decided August 8, 2017 ◦ Section 612 of the Clean Air Act does not allow EPA to replace HFCs, just CFCs ◦ DC Circuit Court vacated the 2015 rule to the extent it required manufacturers to replace HFCs • DC Circuit Court is allowing EPA to try again ◦ Try again with the Clean Air Act Section 612 using “retroactive disapproval” ◦ EPA could phasedown HFCs under another statute 3
  • 4. EPAResponse Three Step Program 1. Guidance on 2015 HFC category changes ◦ EPA will not enforce the 2015 requirements for HFC restrictions or unacceptability 2. Propose a new rule ◦ Should EPA regulate HFCs a different way or use a different authority? 3. Hold a meeting ◦ Stakeholder meeting scheduled from 9:30 AM to 12:30 PM EDT on Friday, May 4, 2018, at EPA 4
  • 5. Step 1 – Enforcement • EPA will not enforce any of the changes to use restrictions or unacceptability listings in the 2015 rule ◦ 2015 through 2022 phase-out dates for HFCs will not be enforced by EPA ▪ Manufacturers will continue to sell and make products with HFCs ▪ HFCs can continue to be sold ◦ Hydro-chlorofluorocarbon (HCFC) decisions that were part of the 2015 rule will continue to be enforced, because they were not subject to the court decision 5
  • 6. Step 2 – TryAgain • EPA will continue to pursue HFC reductions via a new notice-and-comment rulemaking ◦ Rewrite the 1994 SNAP rule ▪ Regulate only those who have not replaced CFCs yet ◦ Draft new requirements for end-users ▪ Current requirements are for manufacturers ◦ Retroactive disapproval ▪ Court decision identified three big hurdles ◦ Regulate under another statute ▪ Toxic Substances Control Act ▪ National Emission Standard for Hazardous Air Pollutants ▪ Prevention of Significant Deterioration ◦ And others… 6
  • 7. Step 3 – Stakeholder Meeting • EPA will host a meeting to discuss the Court decision and notice-and-comment rulemaking ◦ 9:30 AM to 12:30 PM EDT on Friday, May 4, 2018 ◦ EPA William Jefferson Clinton East Building Room 1153 1201 Constitution Avenue NW Washington, DC 20004 ◦ RSVP by April 27, 2018 by contacting Chenise Farquharson at farquharson.chenise@epa.gov ◦ Information available on the EPA website: https://www.epa.gov/snap 7
  • 8. Why? Why is the current EPA administration intent on keeping a rule that reduces GHG emissions? • Domestic manufacturers are creating new compounds that are not GHGs or ozone depleting substances ◦ Maintain profit margins while replacement compounds are protected by patent ◦ New products are being sold around the world, but no market in United States ◦ New regulations create a domestic market 8
  • 9. OtherActions • Kigali Amendment to the Montreal Protocol ◦ As the Montreal Protocol forced nations to move away from CFCs, GHG emissions increase from HFCs ◦ Removing HFCs as acceptable alternatives would ensure no increase in HFC / GHG emissions ◦ Kigali amendment agreed to on October 15, 2016 ◦ Department of State currently considering Kigali Amendment, which requires Senate approval • American Innovation & Manufacturing Act sponsored by Senators John Kennedy (R-LA) & Tom Carper (D-DE) ◦ Would give EPA new authority to regulate HFCs ◦ Allowance and trading program ◦ Ratifies the Kigali Amendment 9