H.R.1: What You Should Know About the Environmental and Energy Provisions in the “One Big Beautiful Bill” Act
On July 4, President Trump signed H.R.1—the “One Big Beautiful Bill,” referred to as the OBBB—into law. This sweeping tax and policy law, enacted through the process of budget reconciliation requiring a simple majority vote by Congress, carries significant implications for environmental funding, clean energy development, and climate-related programs administered by the U.S. Environmental Protection Agency (EPA), as well as the tax code. Much of the provisions affect programs and funding originally authorized under the 2022 Inflation Reduction Act (“IRA”), which was former President Biden’s signature budget reconciliation bill. Below, we outline some of the key features of the OBBB environmental and energy provisions.
U.S. EPA Bans Hydrofluorocarbons in Refrigeration, Air Conditioning, and Heating Products
On October 5, 2023, the U.S. Environmental Protection Agency (EPA) issued a final rule restricting the use of hydrofluorocarbons (HFCs) in new aerosol, foam, and refrigeration, air conditioning, and heat pump (RACHP) products and equipment. The rulemaking is part of the phasedown of HFCs under the American Innovation and Manufacturing Act of 2020. The final rule also establishes a process to submit technology transition petitions to restrict the use of HFCs in industry sectors in which they are used.
U.S. EPA Proposes Rule Banning Methylene Chloride in All Consumer Uses
On April 20, 2023, the U.S. Environmental Protection Agency (EPA) proposed a rule seriously restricting the manufacture, processing, and distribution in commerce of methylene chloride. EPA is exercising its authority under Section 6(a) of the Toxic Substances Control Act (TSCA), which allows the agency to impose such prohibitions on chemical substances that it determines, following a risk evaluation, to present an unreasonable risk of injury to health or the environment. Methylene chloride is most commonly used as a solvent in adhesives and sealants, automotive products, and paint and coating removers, and this rule could affect, among others, the automotive, pharmaceutical, and chemical manufacturing sectors.
