The American Innovation and Manufacturing (AIM) Act, enacted in 2020, authorizes the EPA to regulate hydrofluorocarbon (HFC) refrigerants through a phasedown schedule and conversion to lower global warming potential alternatives. This legislation implements the Kigali Amendment to the Montreal Protocol, committing the U.S. to reducing HFC production and consumption.
Regulatory Framework
The AIM Act establishes the legal authority for EPA’s HFC phasedown program, which reduces allowable HFC production by 85% through 2036. The law allows EPA to set allowance allocations, establish trading mechanisms, and enforce compliance through penalties. It specifically targets HFC-410A, the dominant residential refrigerant, pushing industry toward HFO replacements. The act includes provisions for research and development of ultra-low-GWP alternatives and safe flammable refrigerant handling standards.
Market and Compliance Impact
The AIM Act creates business opportunities for equipment manufacturers and HVAC companies offering system upgrades. Contractors must stay current with EPA regulations and refrigerant availability as the phasedown progresses. Refrigerant costs are expected to increase substantially as HFC supplies tighten, encouraging equipment replacement over servicing. The act positions the U.S. as a leader in climate action while maintaining manufacturing competitiveness through gradual transition timelines.