EPA Revokes 1.14 Million of Solstice's 2027 HFC Allowances Over Imports Made Without Them
EPA issued 229.5 million MTEVe of 2027 production allowances and 181.5 million of consumption allowances to 74 holders. Solstice Advanced Materials, formerly Honeywell, lost 1,144,200 for importing HFCs without allowances. Eligible holders gained about 2.2 percent from redistribution.
The largest HFC allowance holder in the country lost 1,144,200 of its 2027 consumption allowances for importing hydrofluorocarbons without spending allowances to cover them, according to the Environmental Protection Agency's 2027 allocation notice, published Oct. 6 in the Federal Register.
Solstice Advanced Materials US, listed in the notice as formerly known as Honeywell International, was allocated 50,422,000.5 metric tons of exchange value equivalent (MTEVe) in consumption allowances for 2027. After the new revocation and penalties carried over from actions EPA finalized in 2023, it has 47,890,358.4 available, about 26 percent of the national total. EPA said the revocation took effect Aug. 7 and was set at the 50 percent premium the agency applies to a first instance.
FluoroFusion Specialty Chemicals, an importer allocated 1,562,912.5 MTEVe, lost 1,841.2 for the same violation. Because it was the company's second administrative consequence, EPA applied a 100 percent premium.
Where the 2027 pool sits
The totals follow the schedule in 40 CFR 84.7. For 2027, EPA issued 229,521,263 MTEVe of production allowances and 181,522,990 MTEVe of consumption allowances, the fourth year at 60 percent of baseline. The cap stays there through 2028 and falls to 30 percent in 2029.
Production allowances went to five companies. Solstice holds 108,715,279.7 MTEVe, about 47 percent of the production pool, followed by Chemours at 48,023,780.9, Mexichem Fluor at 32,034,436.3, Arkema at 25,904,001.0 and Iofina Chemical at 1,113.9.
- Solstice Advanced Materials: 47,890,358.4
- Chemours: 21,448,498.7
- Arkema: 19,447,230.6
- IGas Holdings: 16,338,836.2
- Mexichem Fluor: 15,945,467.1
- National Refrigerants: 12,395,223.2
- Weitron: 3,966,574.7
- RGAS: 2,988,078.4
- Technical Chemical: 2,137,177.0
- A-Gas: 2,133,455.6
The consumption list runs to 74 holders. Reclaimer Hudson Technologies has 2,106,791.8 MTEVe, Daikin America 1,953,098.4, Walmart 1,427,202.8, AutoZone Parts 1,264,681.7 and Advance Auto Parts 447,308.2. Twenty companies received an identical initial allocation of 122,398.2 MTEVe each.
Penalties move allowances between holders
Revoked allowances do not disappear. EPA takes them back and hands them to every other eligible holder in proportion to market share. For 2027, the agency redistributed 2,534,045.5 MTEVe that way and retired another 61,751.9, which must go unused. The effect shows in the tables: Hudson, A-Gas and Walmart each ended up about 2.2 percent above their initial allocations.
Two holders start 2027 with nothing to spend. Bluon, allocated 20,487.5 MTEVe, and Resonac America, allocated 40,662.0, both show zero available because EPA said in 2023 it "will retire and revoke allowances until the full administrative consequence is covered."
On the application-specific side, EPA allocated 13,839,651.2 MTEVe, about 66 percent of it to the Department of Defense. Chipmaker Wolfspeed had 2,291.3 MTEVe withheld for failing to file a required auditing report, and EPA will return them once the report is submitted and verified.
Why This Matters to Contractors
Solstice starts 2027 with 2,531,642.1 MTEVe fewer consumption allowances than it was allocated, close to the 2,534,045.5 that EPA redistributed to other holders this year. The pool can still shift before year end. EPA set aside 1,000,000 MTEVe for metered dose inhaler makers, who have until April 30, 2027, to claim it, and the agency said whatever goes unclaimed will be divided pro rata among general pool holders within 60 days. Petitions challenging the allocations or the penalty actions must be filed by Dec. 7, 2026.
Sources
- U.S. Environmental Protection Agency, "Phasedown of Hydrofluorocarbons: Notice of 2027 Allowance Allocations for Production and Consumption of Regulated Substances Under the American Innovation and Manufacturing Act of 2020, and Notice of Final Actions Establishing Administrative Consequences," 91 FR 63548, Oct. 6, 2026. federalregister.gov
- Code of Federal Regulations, 40 CFR 84.7, phasedown schedule, current text. ecfr.gov
- Code of Federal Regulations, 40 CFR 84.35, administrative consequences, current text. ecfr.gov