D.C. Circuit Upholds U.S. EPA’s HFC Cap-and-Trade Program Under AIM Act
On August 1, 2025, the U.S. Court of Appeals for the D.C. Circuit upheld the U.S. Environmental Protection Agency’s (EPA) authority under the American Innovation and Manufacturing (AIM) Act to phase down hydrofluorocarbons (HFCs) through a cap-and-trade program. In IGas Holdings, Inc. v. EPA, No. 23-1261, a unanimous panel rejected constitutional and administrative law challenges from refrigerant industry members, finding that the AIM Act provides a clear “intelligible principle” to guide EPA’s allowance allocation. The Court also held that EPA’s decision to exclude 2020 market data from its allocation methodology was not arbitrary and capricious.
EPA Advances State Primacy for Underground Injection Control Class VI Well Programs: Key Updates for Carbon Sequestration Efforts
The U.S. Environmental Protection Agency (EPA) continues to take steps to expand state primacy for the Underground Injection Control (UIC) Class VI well program, established under the Safe Drinking Water Act (SDWA). Class VI wells, added as a distinct category in 2010, are used to inject carbon dioxide into deep rock formations for the purpose of long-term geologic carbon sequestration.
