How does the HCFC allocation system work?
EPA grants importers and producers allowances based on the amount of HCFCs they historically produced or imported. One allowance is equal to one kilogram of ozone-depleting substance (ODS). There are two types of allowances: production allowances and consumption allowances. A producer must use one production allowance and one consumption allowance for each kilogram produced. An importer must use one consumption allowance for each kilogram imported. The allowance system prior to 2010 included HCFC-22, HCFC-142b, and HCFC-141b. EPA has widened the scope of the allowance system to include HCFC-123, HCFC-124, and HCFC-225ca/cb after 2010. Companies that provide verification to EPA on exported quantities of HCFCs that were originally produced or imported with proper allowances can receive a refund of the allowances for that quantity. Only companies that hold consumption allowances for an HCFC are allowed to import that specific HCFC. International trade is restricted according to the guidel
