WASHINGTON, D.C. — The U.S. Supreme Court has denied a petition for certiorari in RMS of Georgia, LLC d/b/a Choice Refrigerants v. Environmental Protection Agency, leaving in place the Environmental Protection Agency's allowance allocation rule used to implement the refrigerant phasedown required under the American Innovation and Manufacturing (AIM) Act.

The decision supports the position advanced by Heating, Air-conditioning & Refrigeration Distributors International (HARDI) and the Plumbing-Heating-Cooling Contractors Association (PHCC) — National Association, which filed an amicus brief in the case earlier this year.

The lawsuit challenged the Environmental Protection Agency's allowance allocation system for hydrofluorocarbons (HFCs), refrigerants commonly used in HVACR equipment. Under the AIM Act of 2020, the Environmental Protection Agency is required to reduce HFC production and consumption by 85% below historical baseline levels by 2036.

According to HARDI and PHCC, maintaining the current allocation framework provides stability for manufacturers, distributors, and contractors as the industry continues transitioning to lower-global-warming-potential refrigerants.

In their May 14 amicus brief, the organizations argued that overturning the allocation rule could disrupt the HVACR supply chain and create uncertainty for businesses investing in equipment, storage, training, and customer support related to the refrigerant transition.

"The HVACR industry needs clear, predictable rules to make major investments in equipment, supply chains, storage, training, and customer support," said Alex Ayers, vice president of government affairs at HARDI, in the original filing.

PHCC also emphasized the importance of regulatory certainty for contractors responsible for installing and servicing equipment designed for next-generation refrigerants.

"We need to maintain a stable transition to avoid disruption and higher costs for contractors and consumers alike," said Chuck White, vice president of regulatory affairs at PHCC.

The appeal was also opposed by the federal government, the Air-Conditioning, Heating, and Refrigeration Institute (AHRI), and the Alliance for Responsible Atmospheric Policy.

For HVACR contractors, the Supreme Court's action preserves the regulatory framework governing the ongoing refrigerant phasedown and provides continued certainty around the Environmental Protection Agency's implementation of the AIM Act.