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Senators John Kennedy (R-Louisiana) and Tom Carper (D-Delaware) have introduced Senate Bill 2754, The American Innovation and Manufacturing Act of 2019, which AHRI and ACCA believe has enough support to pass in the Senate.

The ACHR News reported Senator Kennedy saying: “The world is moving away from HFCs, and the U.S. is in danger of getting stuck at the starting gate. We want these new refrigerants to be produced in the U.S., not in China. We want to export these new refrigerants, not import them.”

Advocates estimate that 150,000 new jobs will be created directly and indirectly as a result of the new rules, generating an estimated $38.8 billion in economic benefits by 2027. Sponsors of the bill refer to an industry study finding that a proactive approach could create 33,000 new manufacturing jobs in North America.

The bill’s three main objectives are:

  • Gradually phase down the production and consumption of HFCs through an allowance allocation and trading program.
  • Authorize the EPA to establish standards for the management of HFCs used as refrigerants and for the recovery of used HFCs.
  • Authorize the EPA to facilitate transitions to next-generation technologies by establishing sector-based use restrictions.

The legislation’s details reflect the industry’s expectations, which were outlined in a letter from 32 CEOs submitted recently to Congress. They also reflect the Kigali Amendment to the Montreal Protocol, which has been adopted by Canada and is quickly becoming the international standard. From an environmental standpoint this will help the global refrigeration industry to finish the job on repairing the ozone hole above the Arctic, and also lessen the negative contributions of refrigerants to our greenhouse gas challenges.