The D.C. Circuit Court of Appeals upheld a U.S. Environmental Protection Agency (EPA) rule setting an allocation methodology for hydrofluorocarbon (HFC) allowances for 2024 through 2028 as part of the cap-and-trade program to implement the HFC phasedown required by the American Innovation and Manufacturing Act (AIM Act). The court rejected a claim that the AIM Act unconstitutionally delegated legislative power to EPA, finding that “Congress provided ample direction to guide the EPA’s exercise of discretion” in deciding how to allocate the HFC allowances. The court also found that EPA used a reasonable allocation methodology.

Challenge to EPA's final rule regarding the allowance allocation methodology for 2024 and later years that will be used to implement the phasedown of hydrofluorocarbons under the American Innovation and Manufacturing Act.

IGas Holdings, Inc. v. EPA

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D.C. Circuit Rejected Challenges to EPA’s Cap-and-Trade Allocation Methodology for HFC Phasedown

Filed

United States of America

District of Columbia

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D.C. Circuit Rejected Challenges to EPA’s Cap-and-Trade Allocation Methodology for HFC Phasedown

Target

Policy instrument

Risk

Fossil fuel

Greenhouse gas

Economic sector

Finance