LoweConex LoweDown – The AIM Act, Section 608 & HFC Phase-Down

Edition 2: The AIM Act & HFC Regulations

This issue covers the American Innovation and Manufacturing (AIM) Act and its impact on hydrofluorocarbon (HFC) usage in cooling and refrigeration systems. We also explore the Environmental Protection Agency’s (EPA) Section 608 Regulations, which, together with the AIM Act, are shaping new compliance requirements for American businesses.

What is the AIM Act?

Enacted in 2020, the AIM Act grants the EPA authority to phase down the production and consumption of HFCs—potent greenhouse gases widely used in refrigeration, air conditioning, and insulation foams. The goal is to reduce HFC use by 85% by 2036, measured against a baseline, aligning with global climate commitments.

What is Section 608?

Section 608 of the Clean Air Act regulates the management of refrigerants in stationary cooling systems. It prohibits the intentional venting of ozone-depleting substances (ODS) and their substitutes, including HFCs, when servicing, maintaining, repairing, or disposing of equipment.

Organisations that fail to repair refrigerant leaks in a timely manner may face daily fines—read on to learn more about the risks involved.

What Do You Have to Comply With?

• HFC Phase-Down Schedule – Businesses must adapt to reduced HFC availability, with allocations decreasing each year. The AIM Act primarily affects high-GWP HFC refrigerants such as R-404A, R-507A, and R-410A.
• Technology Transition Rules – Certain equipment and applications will require alternative refrigerants with lower global warming potential (GWP). The EPA has proposed new equipment bans to accelerate the transition.
• Refrigerant Management Requirements – Stricter leak detection, recovery, and recycling regulations are being enforced. As part of Section 608, organisations must comply with enhanced refrigerant management rules.
• Import and Trade Restrictions – Companies handling HFCs must follow new reporting and certification requirements.

What’s the Impact of Non-Compliance?

• Financial Penalties – The EPA can issue fines for AIM Act violations, which may reach over $100,000 per day for significant infractions. Section 608 penalties can also be substantial, reaching up to $37,500 per day per violation, with adjustments for inflation.
• Supply Chain Disruptions – The AIM Act is reducing the supply of HFCs, impacting availability. Non-compliance may limit access to necessary refrigerants, affecting operations and service reliability. Businesses should plan for capital replacement programmes to transition to compliant alternatives.
• Reputational Damage – With sustainability and ESG reporting becoming more critical, non-compliance could affect investor confidence and customer trust.

How to Prepare

To ensure compliance and operational resilience, businesses should:

• Audit Existing Equipment – Identify systems using high-GWP HFCs and assess upgrade options.
• Transition to Low-GWP Alternatives – Invest in equipment compatible with natural refrigerants or next-generation HFC replacements.
• Implement Leak Detection & Maintenance – Reduce emissions through proactive monitoring and maintenance. At LoweConex, we offer Refrigeration Management and Remote Leak Detection software—chat with us to learn how we can help.
• Train Staff & Partners – Ensure employees and contractors are up to date on new handling, reporting, and disposal requirements.
• Leverage Digital Solutions – Use monitoring software to track refrigerant usage and compliance requirements.

Staying ahead of the AIM Act and Section 608 requirements is essential to protecting your business. If accessing asset data, enabling remote monitoring, and ensuring compliance are high on your priorities, speak with us at LoweConex to see how we can support your transition.